Global military spending climbed for the 11th consecutive year in 2025, reaching a record $2.887 trillion, the Stockholm International Peace Research Institute (SIPRI) reported. The rise reflects governments’ reactions to ongoing wars, heightened tensions and broader geopolitical uncertainty, according to SIPRI researcher Xiao Liang. Fighting persisted in Ukraine and Gaza in 2025, and conflicts such as the war in Sudan contributed to instability — dynamics that, coupled with pre-set national spending plans, are likely to sustain the upward trend into 2026 and beyond.
Europe was a major driver of the global increase, with regional military spending up 14% to $864 billion. Russia’s full‑scale invasion of Ukraine in 2022 reshaped European security perceptions, prompting many states — especially NATO members — to boost defense budgets to strengthen militaries and deter further aggression. Central and Western European countries recorded their highest annual growth since the end of the Cold War as new procurement and rearmament plans took effect. Notable increases included Spain (+50%), Poland (+23%) and Italy (+20%).
Germany was the largest European military spender in 2025. Its defense budget rose 24% to $114 billion, making it the world’s fourth‑largest spender. For the first time since 1990, Germany exceeded the NATO benchmark of 2% of GDP, reaching 2.3%. To finance the buildup, the German parliament altered fiscal rules so military spending above 1% of GDP is exempt from the country’s debt brake, allowing greater borrowing for defense. While SIPRI warned that capability gains may lag spending increases, the change signals Germany’s drive toward greater military independence amid uncertainty about future US security guarantees.
The United States remained the world’s biggest military spender but reduced its outlays to $954 billion in 2025, a 7.5% decline from 2024. SIPRI attributed much of the fall to Congress approving no new military aid for Ukraine that year; SIPRI counts such aid as part of donor countries’ military spending. SIPRI expects the pause to be temporary: US budget moves for 2026 point to renewed growth as the US responds to conflicts in the Middle East and rising tensions in Asia. The Pentagon has reported large costs associated with the 2026 Iran war, estimating the first six days alone at $11.3 billion. Even amid the 2025 dip, the US continued substantial investments in nuclear and conventional forces aimed at deterring China and maintaining strategic dominance in the Indo‑Pacific.
China remained the world’s second‑largest military spender, increasing its budget by 7.4% in 2025. China has raised defense spending every year for 31 years, pursuing a program to modernize its forces by 2035. Recent developments included tests of sixth‑generation fighter prototypes and progress toward deploying the H‑20 stealth bomber. China’s buildup has driven higher regional spending — notably in Japan, Taiwan and the Philippines — and influenced security thinking among US allies. Australia, Japan and Taiwan are under growing pressure to boost defense and pursue greater self‑reliance.
Japanese spending rose 9.7% to $62.2 billion in 2025, supporting a post‑2022 buildup focused on missiles and drones and signaling a significant shift in Japan’s defense posture. India was the world’s fifth‑largest military spender, increasing its budget by 8.9% to $92.1 billion. Tensions with China were a major factor, but a 2025 war with Pakistan also drove investment, particularly in aerospace and drone capabilities.
SIPRI noted that the US share of global military expenditure is shrinking not because of deep cuts by top spenders but because of widespread increases among middle powers. Xiao Liang warned that a more evenly distributed military balance does not necessarily make the world safer: “That just means more arms and more weapons. A new arms race reduces trust and increases the risk of miscalculation,” he said.
The global military burden — military spending as a share of world GDP — rose to an estimated 2.5% in 2025, the highest level since 2009. That indicates governments are devoting a larger portion of economic output to defense. SIPRI cautioned that higher military shares will have consequences beyond security policy: resources shifted to defense may come at the expense of social services, development aid and other public spending priorities, with wide-ranging effects across societies.
Edited by: Frank Suyak, Don Mac Coitir