Global Military Spending Hits Record $2.9 Trillion in 2025

Global military spending reached a record $2.887 trillion in 2025, marking the 11th consecutive year of growth and representing 2.5% of global GDP, the highest share since 2009. European defense budgets surged 14% to $864 billion, with Germany increasing spending 24% to $114 billion and exceeding NATO's 2% GDP benchmark for the first time since 1990, while Spain, Poland, and Italy also posted double-digit increases driven by Russia's 2022 invasion of Ukraine. The United States remained the largest spender at $954 billion despite a 7.5% decrease and approved no new Ukraine aid, while China continued its 31-year streak of budget increases with 7.4% growth as it modernized forces and tested advanced weapons. SIPRI warns the trend will continue amid ongoing conflicts in Ukraine, Gaza, and Sudan, potentially forcing governments to cut social services.

Record global military spending driven by geopolitical tensions

• ▪The $2.887 trillion in global military spending in 2025 represents the highest level of military spending ever recorded.
• ▪Global military spending as a share of GDP rose to an estimated 2.5% in 2025, the highest level since 2009.
• ▪Governments spent a total of $2.887 trillion on military equipment in 2025 according to the Stockholm International Peace Research Institute.

Europe's defense buildup in response to Russia's Ukraine invasion

• ▪Central and Western European countries recorded the highest annual military spending growth since the end of the Cold War in 2025.
• ▪German military spending passed the NATO benchmark of 2% of GDP for the first time since 1990, reaching 2.3% in 2025.
• ▪Germany's defense budget rose by 24% to $114 billion in 2025.
• ▪Germany's parliament changed fiscal rules in 2025 to allow military spending above 1% of GDP to be exempt from Germany's debt brake.
• ▪European military spending rose by 14% to $864 billion in 2025.

Shifting military balance between US and China in the Indo-Pacific

• ▪The US Congress approved no new military aid for Ukraine in 2025.
• ▪The first six days of the 2026 Iran war cost the United States $11.3 billion according to the Pentagon.
• ▪Japanese military spending reached $62.2 billion in 2025, a 9.7% increase from 2024.
• ▪India's defense budget rose by 8.9% to $92.1 billion in 2025.
• ▪The United States remained the world's biggest military spender in 2025, accounting for about one-third of global defense spending.
• ▪The United States spent $954 billion on military in 2025, which was 7.5% less than the year before.
• ▪Japan launched a military buildup plan in 2022 driven by security concerns about China and North Korea.
• ▪The United States' share of global military spending has been shrinking steadily since 2020.

Perspective of European defense officials

• ▪Central and Western European countries view meeting NATO's 2% of GDP defense spending benchmark as a strategic priority.

Perspective of United States

• ▪The United States' 7.5% reduction in military spending in 2025 marked a departure from the global trend of increased defense budgets.

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