A U.S. Sailor directs an E-2D Hawkeye, attached to Airborne Command & Control Squadron (VAW) 117, on the flight deck of the Nimitz-class aircraft carrier USS Abraham Lincoln (CVN 72) during Operation Epic Fury on March 26, 2026 | Photo: U.S. Navy
Global military spending reached $2887 billion in 2025, marking an increase of 2.9 per cent in real terms compared to the previous year, according to data released by the Stockholm International Peace Research Institute. This represents the 11th consecutive annual rise in global defence expenditure, with the global military burden reaching 2.5 per cent of gross domestic product.
The increase was driven largely by higher spending in Europe and Asia, while expenditure by the United States declined. The three largest military spenders—the United States, China and Russia—accounted for a combined total of $1480 billion, or 51 per cent of global spending.
“Global military spending rose again in 2025 as states responded to another year of wars, uncertainty and geopolitical upheaval with large-scale armament drives,” said Xiao Liang, Researcher with SIPRI’s Military Expenditure and Arms Production Programme. “Given the range of current crises, as well as many states’ long-term military spending targets, this growth will probably continue through 2026 and beyond.”
US military spending fell by 7.5 per cent to $954 billion in 2025. The decline was linked to the absence of new military aid approvals for Ukraine during the year. However, future spending is expected to rise again.
“The decline in US military expenditure in 2025 is likely to be short-lived,” said Nan Tian, Programme Director of the SIPRI Military Expenditure and Arms Production Programme. “Spending approved by the US Congress for 2026 has risen to over $1 trillion, a substantial increase from 2025, and could rise further to $1.5 trillion in 2027 if President Trump’s latest budget proposal is accepted.”
In Europe, military spending increased by 14 per cent to $864 billion. The rise was linked to continued conflict in Ukraine and higher defence budgets among NATO members. Russia’s military expenditure rose by 5.9 per cent to $190 billion, while Ukraine increased its spending by 20 per cent to $84.1 billion.
“In 2025 military expenditure as a share of government spending reached the highest level ever recorded in both Russia and Ukraine,” said Lorenzo Scarazzato, Researcher with the SIPRI Military Expenditure and Arms Production Programme. “Their spending is likely to keep growing in 2026 if the war continues, with revenues from Russia’s oil sales increasing and a major European Union loan expected by Ukraine.”
European NATO members collectively spent $559 billion in 2025, with many countries meeting or exceeding the 2 per cent of GDP benchmark. Germany and Spain both recorded significant increases in defence spending.
“In 2025 military spending by European NATO members rose faster than at any time since 1953, reflecting the ongoing pursuit of European self-reliance alongside increasing pressure from the United States to strengthen burden sharing within the alliance,” said Jade Guiberteau Ricard, Researcher with the SIPRI Military Expenditure and Arms Production Programme.
In Asia and Oceania, military expenditure rose by 8.1 per cent to $681 billion, the largest increase since 2009. China, Japan and Taiwan all recorded higher spending.
“US allies in Asia and Oceania such as Australia, Japan and the Philippines are spending more on their militaries, not only due to long-standing regional tensions but also due to growing uncertainty over US support,” said Diego Lopes da Silva, Senior Researcher with the SIPRI Military Expenditure and Arms Production Programme.
Spending in the Middle East remained relatively stable, with some variation among countries.
“Despite the recent conflicts, Iran’s military spending decreased in real terms due to economic difficulties,” said Zubaida Karim, Researcher with the SIPRI Military Expenditure and Arms Production Programme. “However, official figures almost certainly understate the true level of Iran’s spending—Iran also uses off-budget oil revenues to finance its military, including the production of missiles and drones.”
The data reflects continued shifts in global defence priorities across regions.
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