Global Military Spending Increases for the 11th Consecutive Year in 2025

Reference News Network reported on April 29 According to a report by AFP on April 26, the Stockholm International Peace Research Institute has released a report stating that global military spending is expected to approach $2.9 trillion in 2025, marking an increase for the 11th consecutive year due to multiple conflicts.

The report states that the United States, China, and Russia are the three major military spending countries, with a combined expenditure of $1.48 trillion, accounting for more than half of global spending. Although U.S. military spending has decreased, global military spending still grew by 2.9% year-on-year, slowing from 9.4% the previous year.

Lorenzo Scarazzato, a researcher at the Stockholm International Peace Research Institute, said that 2025 will again be a year of frequent wars and escalating tensions.

The report shows that the military burden (i.e., the proportion of military spending to global GDP) has reached a new high since 2009.

Scarazzato stated, “Various signs indicate a decline in global security, and countries are increasing their investment in military forces to respond to the current international environment.”

U.S. military spending in 2025 is projected to be $954 billion, a decrease of 7.5% from 2024, primarily due to the U.S. not approving new military aid to Ukraine, after previously committing a total of $127 billion in aid to Ukraine over the past three years.

This decline in U.S. military spending is only temporary, as Congress has approved military spending of over $1 trillion for 2026, and if Trump's budget proposal is passed, military spending in 2027 could even reach $1.5 trillion.

The main driver of the global increase in military spending comes from Europe (including Russia and Ukraine). Military spending in Europe has increased by 14%, reaching $864 billion. Scarazzato believes this is mainly due to two key factors: the ongoing war in Ukraine and the reduction of U.S. security commitments to Europe. The U.S. is “urging Europe to take on more of its own defense responsibilities.”

Germany, as the fourth largest military spender in the world, saw its military spending increase by 24% in 2025, reaching $114 billion.

Russia's military spending increased by 5.9%, reaching $190 billion, which is 7.5% of its GDP.

Ukraine's military spending increased by 20%, reaching $84.1 billion, which is 40% of its GDP.

Despite ongoing tensions in the Middle East, military spending in the region only slightly increased by 0.1%, reaching $218 billion. Most countries in the region increased their military spending, while military expenditures in Israel and Iran actually decreased.

Iran's military spending decreased by 5.6%, falling to $7.4 billion, but this is mainly due to an annual inflation rate of 42%. The nominal military spending of the country has actually increased.

Israel's military spending decreased by 4.9%, falling to $48.3 billion, reflecting a de-escalation in the Gaza conflict following the ceasefire between Israel and Hamas in January 2025. However, Israel's military spending in 2025 is still 97% higher than in 2022.

Military spending in the Asia-Pacific region reached $681 billion, an increase of 8.1% from 2024, marking the largest annual increase since 2009.

According to a report by the South China Morning Post on April 27, due to increasing uncertainty among U.S. allies regarding whether Washington will fulfill its security commitments, military spending in the Asia-Pacific region is growing at the fastest rate in 16 years.

Excluding the Middle East, military spending in Asia and Oceania totaled $681 billion, an increase of 8.1%, the largest increase since 2009.

According to the Stockholm International Peace Research Institute, Tokyo is implementing its military expansion plan initiated in 2022. Diego Lopez da Silva, a senior researcher on military spending and arms production at the institute, stated, “Allies of the U.S. in the Asia-Pacific, such as Australia, Japan, and the Philippines, are increasing military spending not only due to long-standing regional tensions but also because of growing uncertainty about U.S. support. Similar to the situation in Europe, U.S. allies in the Asia-Pacific are also facing pressure from the Trump administration to increase military spending.” (Translation by Wang Zhongju and Tu Qi)