The Russia and Ukraine war which broke out in February 2022 is yet to come to an end with tensions escalating each day. It’s been two years since the conflict began and a peace settlement is nowhere on the cards. While the Russia and Ukraine war is affecting the global finances and trade, it is somehow benefiting the US economy.
In this article, we will highlight three main reasons why the war between Russia and Ukraine is helping the US economy to grow.
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3 Reasons How Russia & Ukraine War Is Benefitting the US Economy
- US Weapons Manufacturers See Gains
Leading US defense contractors like Lockheed Martin saw economic gains after the Russia and Ukraine war. Lockheed Martin ramped up the production of Javelin anti-tank missiles, commonly known as “Saint Javelin”. The production doubled after the war as previously Lockheed Martin produced only 2,100 units a year. However, after the Russia and Ukraine war, Lockheed Martin produced 4,000 units annually by doubling the capacity which also gave the US economy a boost.
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- US Arms Exports Grow 33% to 40%
The US arms exports were at 14% between 2013 and 2017 and continued the same trend from 2017 to 2021. However, post the Russia-Ukraine war, the US global arms exports almost tripled reaching 33% to 40% between 2022 to 2024. The dramatic arms exports in two years are aiding the US economy with billions of dollars in weapons manufacturing and sales.
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- Defense Collaborations Strengthens
The US is now signing defense deals with countries not only in the Middle East but Europe and other allies. From selling arms to Israel, Ukraine, India, Saudi Arabia, and other countries, the Russia-Ukraine war is helping the US economy. In 2023 alone, the US economy saw an influx of $80.9 billion due to defense deals with other countries.
