Story perspectives

Global Military Spending Hits $2.9 T, Europe Leads Surge

4/28/2026

Summary

Europe Defence Surge

Global military spending reached $2.887 trillion in 2025, with U.S. spending $954 billion.
Spending rose 2.9% to 2.5% of global GDP, the highest share since 2009.
Europe’s defence outlays grew 14% to $864 billion, driving most of the global increase.
Asia and Oceania defence spending rose 8.1% to $681 billion.
U.S. spending fell 7.5% to $954 billion, while Congress approved over $1 trillion for 2026 and a $1.5 trillion proposal for 2027.

Summary

Germany Defence Exemption

Germany exempted defense spending over 1 % of GDP from debt-brake in 2025, funding a 24 % increase, with 22 NATO members—including Germany at 2.3 %—meeting the 2 % target for the first time since 1990.
Turkey’s arms fund rose 25 % to 22 % of its budget while India, the second-largest arms importer, saw a 4 % import drop versus 2016-20.
China’s 2025 plan featured sixth-generation fighter tests and H-20 bomber development, extending a 31-year streak.

History

Historical Context

After the 1999 Washington summit expanded NATO to include Central-European states, the alliance formalized a 2 % of GDP defense-spending guideline—adopted in 2006 and reinforced by a 2014 declaration. By June 2024, Jens Stoltenberg reported that 23 of the 32 members had reached the target, showing the pledge’s long-term impact on alliance budgets.

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Europe Defence Surge

Global military spending reached $2.887 trillion in 2025, with U.S. spending $954 billion.
Spending rose 2.9% to 2.5% of global GDP, the highest share since 2009.
Europe’s defence outlays grew 14% to $864 billion, driving most of the global increase.
Asia and Oceania defence spending rose 8.1% to $681 billion.
U.S. spending fell 7.5% to $954 billion, while Congress approved over $1 trillion for 2026 and a $1.5 trillion proposal for 2027.

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