Full Breakdown
Global Military Spending Hits Record $2.9 Trillion in 2025
4/28/2026, 6:55:23 AM
Record Spending and Core Figures
The Stockholm International Peace Research Institute (SIPRI) reported worldwide defence outlays of $2.9 trillion in 2025, a 2.9 % rise over 2024 and the eleventh consecutive increase. The share of global gross domestic product devoted to military budgets rose to 2.5 %, the highest level since 2009.
Drivers of the Surge
SIPRI analysts attribute the rise to “another year of wars, uncertainty and geopolitical upheaval.” The Ukraine war, ongoing Middle-East tensions, and strategic rivalry among the United States, China and Russia all spurred higher budgets. Europe’s re-armament responded to a perceived erosion of U.S. security guarantees.
Regional Breakdown
- Europe: Defence spending grew 14 % to $864 billion; NATO members collectively spent $559 billion, with Germany up 24 % to $114 billion.
- Asia-Oceania: Outlays rose 8.1 % to $681 billion; China $336 billion (+7.4 %), Japan $62 billion (+9.7 %).
- United States: Fell 7.5 % to $954 billion, reflecting the end of new Ukraine aid packages.
- Russia and Ukraine: Russia $190 billion (+5.9 %); Ukraine $84 billion (+20 %), about 40 % of its GDP.
- Middle East: $218 billion, essentially unchanged; Israel $48 billion (-4.9 %), Iran $7.4 billion (-5.6 % real terms).
Official Responses
U.S. officials said the 2025 dip is “likely to be short-lived,” noting a 2026 budget exceeding $1 trillion and a possible $1.5 trillion proposal for 2027. NATO members agreed in June 2025 to raise collective defence spending to 5 % of GDP by 2035, urging European allies to assume greater burden sharing. European governments framed the increase as a move toward self-reliance amid “growing geopolitical instability.”
Criticism and Concerns
SIPRI researchers warned that the expanding arms race “just means more arms and more weapons,” heightening the risk of miscalculation. They also cautioned that higher defence budgets could crowd out social services. Commentators cited a “Trump factor,” arguing that U.S. policy shifts have accelerated European re-armament and increased uncertainty among Asian partners.
Conflicting Data
SIPRI lists total spending at $2.887–$2.89 trillion and U.S. outlays at $954 billion, while other outlets round the total to $2.9 trillion and report U.S. spending of $1.33 trillion. The discrepancy stems from differing treatment of U.S. foreign-aid components. Off-budget financing in Iran’s defence budget remains unquantified.
Verbatim Quotes
- “In 2025 military expenditure as a share of government spending reached the highest level ever recorded in both Russia and Ukraine,” — Lorenzo Scarazzato, SIPRI researcher
- “Global military spending rose again in 2025 as states responded to another year of wars, uncertainty and geopolitical upheaval with large-scale armament drives,” — Xiao Liang, SIPRI researcher
- “Everything points to a world that feels less secure and is spending on its military to compensate for the global landscape,” — Lorenzo Scarazzato, AFP interview
- “The decline in US military expenditure in 2025 is likely to be short-lived,” — Nan Tian, SIPRI programme director
Outlook for 2026
SIPRI projects that the upward trend will persist through 2026, driven by ongoing crises and long-term national spending targets. European re-armament, Asian security concerns and the sustained Russia-Ukraine conflict suggest global defence outlays will remain at historically high levels.
