Executive Summary
Global military expenditure reached a record $2.887 trillion in 2025, an increase of 2.9% in real terms, marking the 11th consecutive year of growth. Spending rose in all regions except the Americas, driven by the war in Ukraine and rising tensions in Asia and the Middle East. The top five spenders were the US, China, Russia, Germany, and India, accounting for 58% of the total. NATO members' spending hit $1.581 trillion, 55% of the global total.
Why It Matters
This document provides critical data on global military spending trends, offering insights into shifting power dynamics and regional security priorities for defense and geopolitical analysts.
Key Takeaways
- Global military expenditure hit a record $2887 billion in 2025, marking 11 consecutive years of growth.
- The USA's military spending decreased by 7.5% in 2025, but it remains the largest spender, while China, Russia, and European NATO members significantly increased their outlays.
- Military spending in Europe rose by 14% and in Asia/Oceania by 8.1%, indicating heightened regional tensions and rearmament efforts.
- The top 5 spenders (USA, China, Russia, Germany, India) account for 58% of global military expenditure.
- Ukraine's military spending increased by 20% to $84.1 billion, representing 40% of its GDP, highlighting the immense cost of the ongoing conflict.
Strategic Relevance
The sustained and increasing global military expenditure, particularly in Europe and Asia, signals a period of heightened geopolitical tension and rearmament. The shifting balance of spending, with the US share decreasing while others rise, indicates a more multipolar security landscape and increased regional defense autonomy or competition.