- Middle East sees relatively stable spending, rising just 0.1% to $218 billion.
- Both Iran and Israel recorded declines. Iran’s spending fell 5.6% to $7.4 billion due to economic pressures
- Israel’s budget dropped 4.9% to $48.3 billion following a ceasefire in Gaza, though it remains significantly higher than pre-2022 levels.
Global military expenditure surged to nearly $2.9 trillion in 2025, marking the eleventh consecutive year of growth, according to a new benchmark report released by the Stockholm International Peace Research Institute (SIPRI). The rise comes amid escalating conflicts and mounting geopolitical tensions across multiple regions.
The United States, China, and Russia together accounted for more than half of global spending, totaling approximately $1.48 trillion, underscoring their dominant role in shaping global military dynamics.
Despite a 2.9% overall annual increase, U.S. military spending fell by 7.5% to $954 billion, largely due to a temporary slowdown in foreign military aid approvals, particularly related to Ukraine assistance packages.
However, analysts expect a rebound, with U.S. defense spending projected to exceed $1 trillion in 2026 and potentially reach $1.5 trillion by 2027, pending congressional approval.
Europe emerged as the primary driver of global growth, with total regional military spending rising 14% to $864 billion. The surge reflects both the prolonged war in Ukraine and shifting U.S. strategic priorities encouraging European allies to assume greater defense responsibilities. Germany increased its defense budget by 24% to $114 billion, while Spain recorded a 50% jump to $40.2 billion, surpassing 2% of GDP for the first time in decades.
Russia increased its military expenditure by 5.9% to $190 billion, representing 7.5% of its GDP. Ukraine, heavily affected by the ongoing conflict, raised its spending by 20% to $84.1 billion, equivalent to a striking 40% of national GDP.
In the Asia-Pacific region, defense spending reached $681 billion, an 8.5% rise—the fastest growth since 2009. China continued to dominate the region with an estimated $336 billion in military expenditure. Japan and Taiwan also recorded sharp increases, reflecting heightened regional security concerns.
Meanwhile, the Middle East saw relatively stable spending, rising just 0.1% to $218 billion. Notably, both Iran and Israel recorded declines. Iran’s spending fell 5.6% to $7.4 billion due to economic pressures, while Israel’s budget dropped 4.9% to $48.3 billion following a ceasefire in Gaza, though it remains significantly higher than pre-2022 levels.
Experts warn that the global “military burden”, the ratio of defense spending to GDP, has now reached its highest level since 2009, reflecting a growing sense of insecurity among nations worldwide.
