Thanks very much, Mr. Casey. I think it's an important opportunity to clarify that, and I'm happy to be able to do so.
In 2014 at the Wales NATO summit, the Government of Canada committed to reach two per cent. It was a difficult challenge at that time because we were spending less than one per cent of our GDP on defence. Since then, we've more than doubled it. We've reiterated our commitment to meet the two per cent ratio, and at the NATO summit in Washington most recently in July, the Prime Minister outlined a plan to reach that target by 2032. It is going to require a significant increase in defence spending, which is absolutely required.
The target that we have agreed to meet is NATO's target. It's a NATO spending metric, and they've said that in establishing their two per cent metric, they would apply exactly the same calculation of national GDPs to all 32 members of NATO. It's based on the OECD projections to report on defence spending across the entire alliance. That's the target that Canada has committed to, reaching two per cent of what NATO defines as our GDP projection based on the OECD report.
Now, the PBO has used different projections for Canada's future GDP. Quite frankly, I'm encouraged by his optimism, and I think the projections reflect some great work that has been done to position Canada for future growth and increases in productivity and in our GDP.
I was also encouraged when he said that such expenditures are possible without unduly impacting the government's deficit-to-GDP ratio. That's all good news, but the only point I would make to the Parliamentary Budget Officer—whose work I'm always grateful for because it's always useful to help us get an understanding of this—is that the target that Canada has committed to is two per cent of the GDP as set by the OECD numbers that NATO has relied upon right across the alliance. I'm encouraged by the Parliamentary Budget Officer's more ambitious projections about our future. I also think that might give us an opportunity to make even more investments in national defence. Those investments are needed to meet the challenges of the current threat environment, the new technologies, climate change and all of those things that require much greater demands upon the Canadian Armed Forces. We must do more. We must invest more in defence and in their capabilities.
Certainly we are committed to meeting it, and I've been able to go to NATO and articulate, I think, a very clear and verifiable plan to our NATO allies on how we're going to get to the NATO spending metric of two per cent, but we also recognize that there's a lot of work to get that done, and Canadians are just going to have to put their heads down and get this done.
If there are future opportunities as a result of more growth in Canada, then we will, I think, benefit from being able to do even more.