Global military expenditure rose for the 11th straight year in 2025, hitting a record $2.887 trillion, the Stockholm International Peace Research Institute (SIPRI) says. SIPRI researcher Xiao Liang attributed the increase to governments responding to ongoing conflicts, heightened geopolitical tensions and pre-set national procurement plans that will likely keep spending high into 2026 and beyond.
Europe was a principal driver of the rise, with regional military outlays jumping 14% to $864 billion. The aftermath of Russia’s 2022 invasion of Ukraine fundamentally altered European security calculations, prompting many states—particularly NATO members—to expand defense budgets to bolster forces and deter further aggression. Central and Western Europe saw their fastest annual growth since the end of the Cold War as rearmament and new procurement plans took effect. Among notable national increases were Spain (+50%), Poland (+23%) and Italy (+20%).
Germany became Europe’s largest defense spender in 2025, raising its budget 24% to $114 billion and ranking fourth globally. For the first time since 1990 Germany spent more than the NATO guideline of 2% of GDP, reaching 2.3%. To fund the buildup, lawmakers adjusted fiscal rules to exempt defense spending above 1% of GDP from the country’s debt-brake constraints, enabling more borrowing for military investment. SIPRI cautioned that higher budgets do not automatically translate into immediate capability gains, but the policy shift underscores Germany’s move toward greater strategic autonomy amid uncertainty about future US security guarantees.
The United States remained the largest single military spender but recorded a 7.5% drop to $954 billion in 2025. SIPRI said much of that decline reflected Congress approving no new military aid for Ukraine that year, since SIPRI includes donor aid in national military spending totals. The institute expects the pause to be temporary: US budget planning for 2026 points to renewed increases as Washington responds to conflicts in the Middle East and rising tensions in Asia. The Pentagon has reported substantial costs tied to the 2026 Iran war, estimating the first six days alone at $11.3 billion. Even with the 2025 dip, the US continued significant investment in nuclear and conventional capabilities aimed at deterring China and preserving strategic advantage in the Indo-Pacific.
China remained the world’s second-largest military spender, raising its budget by 7.4% in 2025. Beijing has increased defense spending every year for 31 years as part of a long-term modernization effort through 2035. Recent developments cited by SIPRI include tests of sixth-generation fighter prototypes and progress toward deploying the H-20 stealth bomber. China’s buildup has driven higher regional spending in countries such as Japan, Taiwan and the Philippines and has influenced defense planning among US allies. Australia, Japan and Taiwan, in particular, face growing pressure to strengthen their own forces and pursue greater self-reliance.
Japan increased defense spending 9.7% to $62.2 billion in 2025, continuing a post-2022 shift toward missile and drone capabilities and a more assertive posture. India ranked fifth globally, with an 8.9% rise to $92.1 billion; tensions with China and a 2025 conflict with Pakistan contributed to heightened investment, especially in aerospace and unmanned systems.
SIPRI highlighted that the US share of global military expenditure is shrinking not because of dramatic cuts by top spenders but because many middle powers are raising their budgets. Xiao Liang warned that a more even distribution of military spending does not necessarily mean a safer world: it can mean more weapons, reduced trust and a greater risk of miscalculation.
The global military burden—the share of world GDP spent on armed forces—climbed to an estimated 2.5% in 2025, the highest level since 2009. SIPRI cautioned that sustained higher military shares have implications beyond security policy: they may crowd out spending on social services, development aid and other public priorities, with broad consequences for societies.
Edited by: Frank Suyak, Don Mac Coitir