The space economy shows up in public spending (in Europe) and jobs (in America)

Space technology, once a niche investment theme, has become a strategic sector underpinning communications, navigation, infrastructure and defence. It’s notable that this is a sector where European public investment is outpacing its US counterpart.

Civil space programs accounted for 6.3% of total civil government budget allocations for R&D across the OECD in 2024 (and about 14% in both France and Italy). Romania and Hungary are also notable for ramping up spending. In the US, proposed cuts have put civilian programs (including those at NASA) under pressure. But a private-sector space boom (for companies such as Elon Musk’s SpaceX) is reflected in strong capital flows and the job market.

Trade figures show strong demand for satellites, aerospace equipment and advanced components. Exports of spacecraft and related components from the US, Germany and France have rebounded strongly since the pandemic, even as export controls limit trade in some sensitive technologies.