Global military spending hits record $2.89 trillion
Europe surged 14% to offset a US decline, marking the 11th consecutive year of rising defense budgets as geopolitical tensions fuel the historic escalation.
Apr 26th 2026 · World
Global military spending reached US$2.89 trillion in 2025, marking the 11th consecutive year of increases and the highest level ever recorded, according to a report by the Stockholm International Peace Research Institute (SIPRI). The global military burden rose to 2.5 per cent of GDP, the highest since 2009. While the United States remained the world's largest spender at US$954 billion, its spending dropped 7.5 per cent from 2024 because Congress approved no new military aid for Ukraine. However, SIPRI researcher Lorenzo Scarazzato said this decrease was more than offset by increases in Europe and Asia, as the world marked "another year of wars and increased tensions." The main driver of global growth was Europe, where spending surged 14 per cent to US$864 billion. Germany, the world's fourth-largest spender, raised expenditure by 24 per cent to US$114 billion, becoming the first NATO member since 1990 to surpass the alliance's 2 per cent of GDP benchmark, reaching 2.3 per cent. Spain recorded a 50 per cent jump to US$40.2 billion, while Poland increased by 23 per cent and Italy by 20 per cent. Meanwhile, the ongoing war in Ukraine saw both Russia and Ukraine boost their spending, with Ukraine allocating a staggering 40 per cent of its GDP to military expenditure. Asia and Oceania saw spending increase by 8.5 per cent to US$681 billion, the region's largest annual rise since 2009. China, the world's second-largest spender at US$336 billion, has increased its defense budget every year for the past three decades. SIPRI researcher Xiao Liang said countries such as Australia, Japan and Taiwan are under growing pressure to spend more on defense due to uncertainty over US security commitments. Japan raised its military expenditure by 9.7 per cent to US$62.2 billion, equivalent to 1.4 per cent of GDP. SIPRI experts warned that the trend would likely continue through 2026 and beyond as geopolitical tensions persist, with the US Congress already approving spending of over US$1 trillion for 2026.