Australia is a small country of 25 million people. It ranks between 12th to 14th in the world in terms of the overall size of its economy. Although the gap between it and the large population, industrialised countries is substantial. Its military spending, ranking also around 12th in the world, therefore matches its ranking in size of economy. However, while the US economy is almost 20 times larger than the Australian economy, Australian defence spending per capita is very high at about 65% of that of the United States. Australia spends high on the armed forces for its small population. Military spending rose by 29 percent in inflation-adjusted terms between 2007 and 2016 and is projected to grow from $35 billion in 2017-18 to $42 billion by 2021.