Australia's defence spending has risen by nearly 56 per cent over the past seven years, placing the nation 13th behind the world's defence powerhouses.
Figures compiled by analysts for Jane's Industry Quarterly found Australia spends $US19.74 billion ($A25.66 billion) on defence annually, nearly 2 per cent of its gross domestic product.
Dr Andrew Davies, director of operations and capability at the Australian Strategic Policy Institute, said the ranking reflected Australia's many international commitments.
Australia has troops involved in operations in Afghanistan, Iraq, East Timor and the Solomon Islands.
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