IRIA News

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Global military expenditure reached approximately $2.9 trillion in 2025, marking the 11th consecutive year of growth, according to new data released by the Stockholm International Peace Research Institute (SIPRI).

Despite the overall increase, the growth rate slowed compared to 2024, with global military spending rising by 2.9% in real terms.

SIPRI noted that the global military burden increased to 2.5% of global GDP, the highest level since 2009, reflecting sustained global prioritization of defense expenditure amid ongoing geopolitical tensions and conflicts.

Europe Drives Global Increase

Europe was the main driver of global military spending growth in 2025, with expenditure rising by 14% to $864 billion, the highest level ever recorded for the region.

The increase was largely driven by NATO member states responding to the ongoing war in Ukraine and broader security concerns.

Germany recorded a 24% increase in military spending to $114 billion, crossing the 2% of GDP threshold for the first time since 1990.

Spain increased its defense budget by 50% to $40.2 billion, also surpassing the 2% GDP level for the first time since 1994. Poland continued to maintain one of the highest defense burdens in NATO, spending 4.5% of its GDP on its military.

Across NATO Europe, 22 member states now meet or exceed the 2% GDP defense target, reflecting a broader shift toward increased military preparedness and burden-sharing within the alliance.

Asia-Pacific Sees Strongest Growth Since 2009

Military spending in Asia and Oceania rose by 8.1% to $681 billion in 2025, marking the fastest regional increase since 2009.

China remained the largest military spender in the region, increasing its defense budget by 7.4% to $336 billion, continuing its 31-year streak of annual growth.

Taiwan increased its military expenditure by 14% to $18.2 billion, the largest rise since at least 1988, amid rising tensions and increased Chinese military activity near the island.

Japan raised its defense spending by 9.7% to $62.2 billion, reaching 1.4% of GDP, the highest level since 1958, as it continues to expand its military capabilities in response to regional security concerns.

United States Sees First Major Decline in Years

The United States remained the world’s largest military spender at $954 billion in 2025, despite a 7.5% decline compared to the previous year. The decrease was primarily attributed to the absence of new congressional approvals for Ukraine-related military aid during the year.

SIPRI noted that over the previous three years, the United States had approved approximately $127 billion in military assistance to Ukraine, which significantly influenced earlier spending levels. Despite the decline, the U.S. continued to invest heavily in nuclear modernization and Indo-Pacific defense capabilities aimed at countering China.

Researchers also noted that the decline is likely temporary, as Congress has already approved over $1 trillion for 2026, with potential increases to $1.5 trillion in 2027 under current proposals.

Russia and Ukraine Maintain Extremely High War Spending

Russia and Ukraine continued to allocate exceptionally large shares of national resources to military activity as the war entered its fifth year.

Russia’s military spending rose to an estimated $190 billion, representing 7.5% of GDP and around 20% of total government expenditure.

Ukraine spent $84.1 billion, equivalent to 40% of GDP and 63% of government spending, making it one of the highest military burdens globally.

SIPRI noted that both countries are now operating at historically unprecedented levels of military expenditure relative to the size of their economies.

Middle East Military Spending Remains Stable

Military spending in the Middle East totaled approximately $218 billion in 2025, showing a marginal increase of 0.1% compared to the previous year.

Israel’s defense spending declined by 4.9% to $48.3 billion following reduced military activity in Gaza after the January 2025 ceasefire. Türkiye increased its military expenditure by 7.2% to $30 billion, driven by ongoing regional operations.

Iran’s spending fell by 5.6% to $7.4 billion in real terms, although SIPRI noted that inflation and off-budget financing suggest actual defense-related activity may be higher than official figures indicate.

Africa and Latin America Record Mixed Increases

Africa’s military expenditure rose by 8.5% to $58.2 billion in 2025, driven by rising insecurity and insurgencies across several regions. Nigeria recorded a sharp 55% increase in military spending to $2.1 billion amid worsening internal security challenges.

In Latin America, Guyana increased its defense spending by 16% to $248 million due to escalating tensions with Venezuela over the Essequibo region. Venezuela’s military spending remains unclear due to limited publicly available data.

NATO Spending and Transparency Concerns

NATO’s total military expenditure reached $1.581 trillion in 2025, accounting for 55% of global military spending. At the NATO summit in June 2025, member states agreed to raise defense spending targets to 5% of GDP by 2035, including broader “defense and security-related” expenditures.

However, SIPRI researchers warned that expanding definitions of military spending could reduce transparency and lead to “creative accounting” practices.

Analysts also noted that the inclusion of non-traditional expenditures could make it more difficult to accurately assess actual military capabilities across member states.

SIPRI researchers emphasized that despite the slower growth rate in 2025, global military expenditure is expected to continue rising. Outside the United States, global spending increased by 9.2%, indicating sustained upward pressure across most regions.

According to the report, ongoing wars, geopolitical competition, and long-term military modernization plans suggest that global defense spending will likely continue its upward trajectory in the coming years.