Global military expenditure reached nearly $2.9 trillion in 2025, marking the 11th consecutive annual increase. The rise comes amid persistent geopolitical tensions and ongoing conflicts, with Europe and Asia accounting for much of the latest growth. The United States, China and Russia remained the dominant spenders, together responsible for just over half of the global total. Despite a temporary dip in US spending, broader patterns suggest a sustained upward trajectory in defence budgets worldwide.
The figures highlight a shifting security environment in which many governments are expanding military capabilities. According to the Stockholm International Peace Research Institute (SIPRI), global military spending has now reached its highest share of global GDP since 2009.
European and Asian Increases Offset U.S. Decline
Military spending rose by 2.9 per cent in real terms compared with 2024, according to SIPRI data. This slower rate of growth was largely influenced by a 7.5 per cent reduction in US expenditure, which fell to $954 billion after no new military aid packages for Ukraine were approved during the year.
Even so, the overall global increase was sustained by sharp rises elsewhere. According to SIPRI, spending outside the United States grew by 9.2 per cent, reflecting intensified regional security concerns.
Europe recorded the most significant regional increase, with expenditure rising by 14 per cent to $864 billion. This surge was driven by the ongoing war in Ukraine and a broader push among European countries to strengthen their own defence capabilities. As noted by SIPRI researcher Lorenzo Scarazzato in comments reported by AFP, reduced US engagement in European security has also encouraged higher spending across the continent.
Germany increased its military budget by 24 per cent to $114 billion, while Spain’s spending rose by 50 per cent to $40.2 billion, pushing it above 2 per cent of GDP for the first time in decades. According to SIPRI, 22 of the 29 European NATO members reached or exceeded this threshold in 2025.
In Asia and Oceania, expenditure climbed by more than 8 per cent to $681 billion, marking the region’s largest annual increase since 2009. China accounted for a significant share, raising its spending by 7.4 per cent to $336 billion, continuing a decades-long pattern of annual increases. Japan and Taiwan also recorded notable rises, reflecting heightened regional tensions.
Conflict and Uncertainty Sustain Long-Term Spending Growth
The broader trend is closely tied to ongoing conflicts and perceived security risks. The war in Ukraine continues to influence spending patterns, with both Russia and Ukraine allocating substantial portions of their economies to defence. Russia’s military expenditure reached $190 billion in 2025, equivalent to 7.5 per cent of GDP, while Ukraine’s rose to $84.1 billion, or 40 per cent of GDP. According to SIPRI, military expenditure as a share of government spending reached record levels in both countries during the year. These figures reflect the intensity of the conflict and its economic impact.
In the Middle East, spending remained relatively stable at $218 billion, increasing by just 0.1 per cent. While most countries in the region raised their budgets, Israel and Iran recorded declines. Israel’s spending fell by 4.9 per cent following a reduction in the intensity of the Gaza conflict after a ceasefire in early 2025, though it remained significantly higher than in 2022. Iran’s decrease, according to SIPRI, was driven by high inflation, with nominal spending still rising.
Elsewhere, increases were also observed in Africa and parts of Asia, often linked to internal security challenges and regional disputes. According to SIPRI researcher Xiao Liang, cited in the institute’s release, the continued rise in military spending reflects “wars, uncertainty and geopolitical upheaval”.
Current data suggests that this pattern is unlikely to reverse in the near term, as many countries maintain or expand long-term defence commitments in response to an increasingly unstable global environment.
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