Growth seen for Latin America's defense market

NEWTOWN, Conn., April 20 (UPI) -- The Latin American defense market is increasingly becoming active because of the need to modernize military systems and economic growth to fund procurement.

Market analysis firm Forecast International, in its latest report on the regional market, said counter-insurgency and surveillance equipment tops the shopping list of many countries as they battle guerrilla groups, some of which gain funding through narcotics trafficking.

Also high on procurements lists are paramilitary equipment -- small arms, helicopters, patrol boats, armored vehicles, trucks, and communications equipment -- instead of larger conventional warfare systems such as fighter aircraft, tanks, or large ships.

"Although the drug trade is by no means new to Latin America, there has been an uptick in narcotics trafficking led by the regional insurgent groups," said Rebecca Barrett Edwards, Forecast International Latin America and Caribbean analyst. "These groups are well funded by the illicit drug industry and have access to advanced weapons which the governments must counter.

"Overall spending figures (for weapons) are expected to increase over the period 2015-2019 by a compound annual growth rate of 4.9 percent, with regional totals increasing from $80.525 billion to $102.246 billion."

The title of the Forecast International report is ""The Military Market for Latin America."