When bombs are falling, arms industry profits are rising. As war rages in Gaza, we look at how the defence sector is both benefiting from the violence and struggling to keep up. Even before the latest flare-up, global defence spending was rising to Cold War levels – largely due to the war in Ukraine, but also due to a perceived threat from China's growing military prowess. In 2022, military outlays rose for the eighth straight year, hitting $2.24 trillion.