Global Military Spending Rises in 2025 Despite US Decline, Says SIPRI
Synopsis
Rising global tensions push military spending to highest share of GDP since 2009.
Global military expenditure climbed in 2025 despite a drop in US spending, driven by rising tensions and increased defence budgets in Europe, according to a report by Stockholm International Peace Research Institute.
Key highlights
- Global military spending hits $2.89 trillion
- Spending rises for 11th consecutive year
- US spending falls 7.5% amid Ukraine aid pause
- Europe leads growth with 14% increase
- Military spending reaches highest GDP share since 2009
What Happened
Worldwide military spending rose 2.9% to $2.89 trillion in 2025, marking the 11th straight year of growth.
The increase pushed defence spending to 2.5% of global GDP, the highest level since 2009.
However, spending by the United States declined 7.5% to $954 billion after Donald Trump halted new military financial aid to Ukraine.
Why This Matters
The data highlights how geopolitical tensions continue to drive defence spending globally, even as the world’s largest military spender temporarily cuts back.
It also signals a shift in spending dynamics, with Europe and other regions stepping up defence investments.
Regional Trends
Europe emerged as the main driver of growth, with spending rising 14% to $864 billion.
The increase reflects continued military build-up amid the ongoing Russia-Ukraine war and stronger commitments from NATO members.
Meanwhile:
- Russia and Ukraine both increased military spending
- Central and Western Europe saw the fastest growth since the Cold War
Top Military Spenders
The top three countries:
- United States
- China
- Russia
Together accounted for $1.48 trillion, or 51% of global military expenditure.
Other Notable Trends
- Israel saw spending fall 4.9% as the Gaza conflict eased
- Iran reduced spending for a second straight year
Outlook
SIPRI expects global military spending to continue rising through 2026 and beyond, citing ongoing conflicts and long-term defence commitments.
US spending is also projected to rebound sharply, with approved budgets exceeding $1 trillion in 2026 and potentially reaching $1.5 trillion by 2027.
Bottom Line
Despite a temporary dip in US spending, global military expenditure continues to climb, reflecting persistent geopolitical instability and rising defence priorities worldwide.
FAQs
Q1. How much was global military spending in 2025?
$2.89 trillion.
Q2. Why did US spending fall?
Due to a pause in new military aid to Ukraine.
Q3. Which region drove growth?
Europe, with a 14% increase.
Q4. Who are the top spenders?
The United States, China and Russia.
Q5. Will spending keep rising?
Yes, SIPRI expects continued growth in coming years.
Follow Inspirepreneur Magazine for daily global business news.
I write about markets, money, and the macro forces that move them. Passionate about turning complex economic trends into sharp, easy-to-understand stories. Off the clock, it’s hip hop, rock, reggae -- and a mix of cricket and basketball.
