Global Military Spending Hits New Record

SadaNews - The Stockholm International Peace Research Institute reported today, Monday, that global military spending has reached a record level in 2025, marking the eleventh consecutive year of increases driven by wars and geopolitical tensions.

The institute's data showed that inflation-adjusted spending rose by 2.9 percent year-on-year to nearly $2.89 trillion, raising the increase over the past decade to 41 percent.

According to the report, the increase was slower than in 2024, reflecting a decline in U.S. military spending on aid to Ukraine, although Washington increased investment in its own nuclear and conventional capabilities.

Institute expert Diego Lopez da Silva stated that the United States remains the world's largest military spender by a significant margin and is expected to raise its spending again after announcing plans to increase expenditure.

The sharp increase in European spending was a major driver of the global rise, with expenditures across the region jumping by 14 percent in 2025.

According to da Silva, concerns over the reliability of the United States as a NATO partner contributed to the budget increases, as governments sought to bolster security amidst a deteriorating international environment.

Germany ranked fourth globally, after the United States, China, and Russia, with its spending rising by 24 percent to reach $114 billion.

For the first time since 1990, German defense spending exceeded NATO's target of 2 percent of GDP.

In total, 22 European NATO members met this standard.

Both Russia and Ukraine increased military spending again in the fourth year of the ongoing war.

Ukraine's spending reached 40 percent of GDP, with over 60 percent of government spending directed towards the military.

Military spending also rose in several Asian countries, including China, Japan, Taiwan, India, and Pakistan, amidst various conflicts and tensions.

In the Middle East, spending increased only slightly in 2025.

In Israel, spending decreased, which institute researchers attributed to the reduced intensity of the war in Gaza following a ceasefire agreement with Hamas in January 2025.

In Iran, military spending fell in inflation-adjusted terms due to tough economic conditions, although the institute noted that it increased when not accounting for high inflation.

Zubaida Karim, an expert at the institute, stated: "Nevertheless, official figures almost certainly underestimate the true level of Iranian spending."

She added: "Iran is also using off-budget oil revenues to finance its military, including missile and drone production."

Da Silva noted that the upward trend in global military spending is expected to continue in 2026, pointing out that there are currently numerous conflicts worldwide, making it hard to imagine a situation improving to the extent that this trend reverses within a year.

The annual report of the Stockholm Institute on global military spending is the most comprehensive dataset of its kind.

Researchers also include in the report spending on personnel, military aid, as well as military research and development.