emirates7 - Europe led the global increase in military spending in 2025, with defence investment across the continent rising at its fastest pace since the end of the Cold War, according to a report by the Stockholm International Peace Research Institute (SIPRI).
The report showed that global military expenditure rose 2.9 percent in real terms to a record US$2.887 trillion in 2025, with Europe recording the sharpest growth. Defence spending across the continent increased by 14 percent to US$864 billion.
The surge was driven by ongoing geopolitical tensions, particularly the Russia–Ukraine conflict, alongside uncertainty surrounding United States security commitments to European members of the North Atlantic Treaty Organization (NATO).
SIPRI noted that military spending by European NATO members grew at its fastest rate since 1953, reflecting heightened security concerns and a shift towards rearmament.
Poland emerged as one of the fastest-growing military spenders, increasing its defence budget by 23 percent to US$46.8 billion, equivalent to 4.5 percent of its GDP, the highest share among NATO members. The country plans to raise this figure further to 4.8 percent in 2026.
Belgium recorded the largest increase among listed countries, with spending rising by 59 percent to US$14.5 billion, while Spain’s defence expenditure climbed 50 percent to US$40.2 billion, exceeding 2 percent of GDP for the first time since 1994.
Germany also significantly increased its military spending by 24 percent to US$114 billion, becoming the world’s fourth-largest defence spender.
The report highlighted that the conflict in Ukraine continues to shape defence strategies across the region. Russia raised its military spending to US$190 billion, representing 7.5 percent of GDP, while Ukraine’s expenditure reached US$84.1 billion, or 40 percent of GDP, marking record levels for both countries.
In total, NATO’s 32 member states spent a combined US$1.581 trillion, accounting for 55 percent of global military expenditure.
The United States remained the largest military spender globally at US$954 billion despite a 7.5 percent decline, attributed to the absence of new military aid packages for Ukraine. China followed with an estimated US$336 billion, reflecting a 7.4 percent increase.
The five largest military spenders—the United States, China, Russia, Germany and India—accounted for 58 percent of global military expenditure in 2025.
The report showed that global military expenditure rose 2.9 percent in real terms to a record US$2.887 trillion in 2025, with Europe recording the sharpest growth. Defence spending across the continent increased by 14 percent to US$864 billion.
The surge was driven by ongoing geopolitical tensions, particularly the Russia–Ukraine conflict, alongside uncertainty surrounding United States security commitments to European members of the North Atlantic Treaty Organization (NATO).
SIPRI noted that military spending by European NATO members grew at its fastest rate since 1953, reflecting heightened security concerns and a shift towards rearmament.
Poland emerged as one of the fastest-growing military spenders, increasing its defence budget by 23 percent to US$46.8 billion, equivalent to 4.5 percent of its GDP, the highest share among NATO members. The country plans to raise this figure further to 4.8 percent in 2026.
Belgium recorded the largest increase among listed countries, with spending rising by 59 percent to US$14.5 billion, while Spain’s defence expenditure climbed 50 percent to US$40.2 billion, exceeding 2 percent of GDP for the first time since 1994.
Germany also significantly increased its military spending by 24 percent to US$114 billion, becoming the world’s fourth-largest defence spender.
The report highlighted that the conflict in Ukraine continues to shape defence strategies across the region. Russia raised its military spending to US$190 billion, representing 7.5 percent of GDP, while Ukraine’s expenditure reached US$84.1 billion, or 40 percent of GDP, marking record levels for both countries.
In total, NATO’s 32 member states spent a combined US$1.581 trillion, accounting for 55 percent of global military expenditure.
The United States remained the largest military spender globally at US$954 billion despite a 7.5 percent decline, attributed to the absence of new military aid packages for Ukraine. China followed with an estimated US$336 billion, reflecting a 7.4 percent increase.
The five largest military spenders—the United States, China, Russia, Germany and India—accounted for 58 percent of global military expenditure in 2025.
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