Full Breakdown
Record Global Military Spending Hits $2.9 Trillion in 2025
4/27/2026, 11:51:17 AM
Regional Drivers
European defence budgets rose 14 % to $864 billion, led by Germany’s 24 % jump to $114 billion and Spain’s 50 % increase to $40.2 billion. Russia’s outlay grew 5.9 % to $190 billion and Ukraine’s surged 20 % to $84.1 billion (40 % of GDP). In Asia-Oceania, total spending reached $681 billion, up 8.1 %; China added 7.4 % to $336 billion, Japan 9.7 % to $62.2 billion, and Taiwan 14 % to $18.2 billion. The United States fell 7.5 % to $954 billion after Congress approved no new aid for Ukraine. Middle-East spending was flat at $218 billion.
SIPRI Assessment
SIPRI researchers described the surge as a response to “ongoing wars, tensions and geopolitical uncertainty” and noted the unprecedented post-Cold-War growth of European NATO members. The institute warned the upward trend will likely continue through 2026, while analysts expect the U.S. dip to be temporary given a 2026 budget exceeding $1 trillion.
Concerns
SIPRI critics warned that expanding defence budgets “just means more arms and more weapons,” raising the risk of miscalculation and potentially diverting funds from social services.
Data Gaps
SIPRI’s methodology omits categories counted by NATO, creating possible discrepancies, and classifying U.S. aid to Ukraine as part of U.S. military spending affects the apparent decline.
Outlook
Projections anticipate continued growth as European states pursue the new NATO target of 2 % of GDP and Asian allies such as Japan, Australia and the Philippines face heightened uncertainty over U.S. support. SIPRI expects the global military-spending trajectory to stay upward through 2026 and beyond, barring major geopolitical de-escalations.
Verbatim Quotes
- “This really speaks to countries' reactions to ongoing wars, tensions and geopolitical uncertainty,” — Xiao Liang, Researcher, SIPRI Military Expenditure and Arms Production Programme
- “‘The decline in US military expenditure in 2025 is likely to be short-lived,’ said Nan Tian, Programme Director of the SIPRI Military Expenditure and Arms Production Programme.” — Nan Tian, Programme Director, SIPRI Military Expenditure and Arms Production Programme
- “‘In 2025 military spending by European NATO members rose faster than at any time since 1953, reflecting the ongoing pursuit of European self-reliance alongside increasing pressure from the United States to strengthen burden sharing within the alliance,’ said Jade Guiberteau Ricard, Researcher with the SIPRI Military Expenditure and Arms Production Programme.” — Jade Guiberteau Ricard, Researcher, SIPRI Military Expenditure and Arms Production Programme
- “A new arms race reduces trust and increases the risk of miscalculation" — and that makes the world more dangerous.” — Xiao Liang, Researcher, SIPRI Military Expenditure and Arms Production Programme
