Deloitte report forecasts 2016 rebound

A new Deloitte report says 2016 will likely be a year of growth for global aerospace and defense revenues.

The document, slated for release Tuesday morning, notes there have been several years of revenue expansion for the sector, but that the growth rate has been shrinking.

In 2016, "stable growth in global gross domestic product (GDP), lower commodity prices especially crude oil, and strong passenger travel demand portend continued growth in the commercial aerospace subsector," the report states. "Moreover, the resurgence of global security threats and growth in defense budgets in many countries are all likely to promote global defense subsector revenue growth over the next few years."

The Deloitte report forecasts total global A&D sector revenue growth of 3 percent in 2016.

The assessment contends that defense spending has bottomed out and will "enter a new growth cycle starting in 2016."

"International demand for defense and military products is increasing as uncertainties brought on by regional tensions in the Middle East, Eastern Europe, North Korea, and the East and South China Seas may lead to increases in defense budgets," the report adds. "Specifically, the United Arab Emirates (UAE), Saudi Arabia, India, South Korea, Japan, India, China, Russia, and other affected governments are already starting to increase purchases of next generation military equipment."