Global military spending continues to rise, reaching a record $2.8 trillion in 2025, up 2.9% from $2.7 trillion in 2024.
This emerges from the new report by the Stockholm International Peace Research Institute (Sipri) on global military spending trends in 2025. Specifically, spending rose to $2.89 trillion in 2025. This marks an increase for the eleventh consecutive year, bringing the share of military spending in global GDP to 2.5%, the highest level since 2009, according to data from the Swedish think tank.
Leading the ranking of the main defense investors are the United States, China, and Russia. These three countries together accounted for $1.48 trillion, equal to 51% of global spending.
With an annual increase of 2.9%, spending is lower than the +9.7% recorded in 2024. However, this slowdown is largely due to a decrease in U.S. military spending. Outside the United States, total spending grew by 9.2% in 2025.
All the details.
GLOBAL MILITARY SPENDING CONTINUES TO RISE
Global growth occurred despite the decline in U.S. spending, mainly due to a strong increase in European spending and growth in Asia and Oceania.
“Global military spending increased again in 2025, as states responded to another year of wars, uncertainty, and geopolitical upheavals with massive rearmament programs,” said Xiao Liang, researcher of the Sipri Military Expenditure and Arms Production Program. “Given the range of current crises, as well as the long-term military spending goals of many states, this growth is likely to continue into 2026 and beyond.”
U.S. MILITARY SPENDING DECREASES
According to the report, U.S. military spending decreased by 7.5% to $954 billion in 2025. The main cause lies in Washington’s failure to approve new military financial aid for Ukraine. In the previous three years, U.S. military funding to Kyiv amounted to $127 billion.
“The decline in U.S. military spending in 2025 is likely to be short-lived,” the report states. “The spending approved by the U.S. Congress for 2026 rose to over $1 trillion, a substantial increase compared to 2025, and could rise further to $1.5 trillion in 2027,” the report reads.
However, the report continues, the United States has increased investments in both nuclear and conventional military capabilities. The goal is to maintain dominance in the Western Hemisphere and deter China in the Indo-Pacific, as stated in the National Security Strategy.
EUROPEAN SPENDING INCREASES
The main factor contributing to the global spending increase is the investment from the Old Continent. In Europe, spending reached $864 billion, up 14% from 2024 and 102% compared to 2016, the highest level ever recorded by Sipri for the region.
The rearmament efforts of European NATO members have led to the largest annual spending growth in Central and Western Europe since the end of the Cold War.
Specifically, the 29 European NATO members spent a total of $559 billion in 2025. Twenty-two of them recorded military spending of at least 2% of GDP, according to Sipri. Germany is the group’s main investor, with a 24% year-on-year increase, reaching $114 billion. For the first time since 1990, Berlin’s military spending exceeded the 2% threshold, reaching 2.3% of GDP in 2025. Spanish military spending also increased by 50%, reaching $40.2 billion, surpassing the 2% GDP threshold for the first time since 1994.
20% INCREASE FOR ITALIAN INVESTMENTS
Twelve of the top 15 countries by military spending increased their expenditures in 2025, with only the United States, the United Kingdom, and Israel recording decreases. Countries at the lower end of the top 15 ranking recorded some of the largest annual percentage increases in this group, with Spain (15th place) registering the largest increase (50%). Poland’s spending (14th place) grew by 23%, while Italy (12th place) and Ukraine (7th place) each increased their military spending by 20%.
RUSSIAN AND UKRAINIAN MILITARY SPENDING GROWS
Russia and Ukraine’s spending continued to grow in the fourth year of war, while increases by European NATO alliance members led to the sharpest annual growth in Central and Western Europe since the end of the Cold War.
Russian military spending grew by 5.9% in 2025, reaching $190 billion, with a military burden equal to 7.5% of GDP. Ukraine, the seventh nation by military spending in 2025, increased its expenditures by 20%, reaching $84.1 billion, equal to 40% of GDP.
“In 2025, military spending as a percentage of public expenditure reached the highest level ever recorded in both Russia and Ukraine,” explained Lorenzo Scarazzato, researcher of the Sipri Military Expenditure and Arms Production program. “Spending is likely to continue growing in 2026 if the war continues, with increased revenues from Russian oil sales and a significant loan planned by the European Union for Ukraine.”
MIDDLE EAST FOCUS
Despite persistent tensions in the Middle East, spending in the region increased only marginally, by 0.1%, reaching $218 billion. While most countries in the region increased spending, Israel and Iran actually reduced theirs. Israel’s spending decreased by 4.9% to $48.3 billion, while Iran’s spending fell for the second consecutive year, decreasing by 5.6% to $7.4 billion.
THE ASIAN RACE
Finally, according to the Stockholm institute’s snapshot, Asia and Oceania recorded the fastest growth in military spending since 2009.
In the region, military spending reached $681 billion in 2025, 8.1% more than in 2024. This is the largest annual increase since 2009. China, the second-largest military spender in the world, increased its spending by 7.4%, reaching $336 billion in 2025. For Beijing, this is the 31st consecutive annual increase, confirming China’s military modernization program.
“U.S. allies in Asia and Oceania, such as Australia, Japan, and the Philippines, are spending more on their armed forces, not only due to long-standing regional tensions but also because of growing uncertainty about U.S. support,” observed Diego Lopes da Silva, senior researcher at Sipri. “As in Europe, U.S. allies in Asia and Oceania are also under pressure from the Trump administration to increase military spending.”
Japan increased its military spending by 9.7%, reaching $62.2 billion in 2025. This is 1.4% of GDP, the highest share since 1958. Taiwan also increased its spending by 14%, reaching $18.2 billion.
