Cookies on the Business Insider India website

Business Insider India has updated its Privacy and Cookie policy. We use cookies to ensure that we give you the better experience on our website. If you continue without changing your settings, we\'ll assume that you are happy to receive all cookies on the Business Insider India website. However, you can change your cookie setting at any time by clicking on our Cookie Policy at any time. You can also see our Privacy Policy.

CHART OF THE DAY: The Jaw-Dropping Decline In Military Spending That Clubbed GDP

Joe WeisenthalJan 30, 2013, 19:45 IST

Why did GDP decline?

Simple, because of a massive decline in military spending that's associated with war drawdown (not sequester/budget cuts).

Here's the chart that shows that this quarter's military spending collapsed in a way that it hasn't done in a decade. It shows the sequential change in defense consumption, and as you can see it fell by over $40 billion from the previous quarter.

For more on today's GDP report, see here >