Global military spending rose to nearly $2.9 trillion in 2025, an 11th consecutive year of growth, researchers said on Monday, as heightened insecurity and rearmament drove defence budgets higher.
The world’s three largest spenders — the United States, China and Russia — accounted for a combined $1.48 trillion, just over half of total global spending.
Spending increased by 2.9% compared with 2024, despite a reduction by the United States, the world’s biggest military spender, according to a report by the Stockholm International Peace Research Institute.
Researcher Lorenzo Scarazzato said the decline in U.S. spending was offset by increases in Europe and Asia, as the world experienced “another year of wars and increased tensions.”.
He added that the global “military burden” — the share of worldwide GDP devoted to defence — reached its highest level since 2009.
“Everything points to a world that feels less secure and is spending on its military to compensate for the global landscape,” Scarazzato said.
U.S. spending fell 7.5% to $954 billion, largely due to the absence of new military aid packages for Ukraine. Over the previous three years, Washington had pledged $127 billion in support to Kyiv.
The decline may be temporary, however, as the U.S. Congress has approved more than $1 trillion in defence spending for 2026, potentially rising to $1.5 trillion in 2027 if President Donald Trump’s budget proposal is adopted.Europe — including Russia and Ukraine — drove much of the global increase, with spending rising 14% to $864 billion.
“That is driven by two major factors. One is the ongoing war in Ukraine, and the other is the decreased U.S. engagement with Europe,” Scarazzato said.
He added that Washington was pushing European nations to take greater responsibility for their own defence.
Germany, the fourth-largest spender, raised expenditure by 24% to $114 billion in 2025, while Spain recorded a 50% jump to $40.2 billion, surpassing 2% of GDP for the first time since 1994.
The war in Ukraine saw both Moscow and Kyiv sharply increase military outlays. Russia’s spending rose 5.9% to $190 billion, equivalent to 7.5% of GDP, while Ukraine boosted expenditure by 20% to $84.1 billion — around 40% of its GDP.
In the Middle East, spending edged up just 0.1% to $218 billion. While most countries increased outlays, Israel and Iran recorded declines.Iran’s spending fell 5.6% to $7.4 billion, largely due to high inflation, although nominal expenditure increased. Israel’s 4.9% drop to $48.3 billion reflected reduced intensity in the Gaza conflict following a January 2025 ceasefire, though spending remained 97% higher than in 2022.
In Asia and Oceania, military expenditure rose 8.5% to $681 billion, the region’s largest annual increase since 2009.
China remained the dominant force, with spending estimated at $336 billion in 2025, continuing a three-decade trend of annual increases.
Scarazzato said other regional powers — including Japan, South Korea and Taiwan — were also ramping up budgets in response to growing threat perceptions. Japan increased military spending by 9.7% to $62.2 billion, its highest share of GDP since 1958, while Taiwan raised expenditure by 14% to $18.2 billion.
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