Global Military Spending Hits Record 2.9 Trillion Dollars in 2025

Global military expenditure reached a record US$2.887 trillion in 2025, marking the 11th consecutive annual increase and representing 2.5% of world GDP. The Stockholm International Peace Research Institute reported that the surge was primarily driven by European rearmament and strategic uncertainty in Asia and Oceania. European spending rose 14% to US$864 billion, with Germany becoming the region's largest spender at US$114 billion, while Asia and Oceania spending grew 8.1% to US$681 billion.

In the United States, spending declined 7.5% to US$954 billion after President Donald Trump ended military aid for Ukraine and curtailed support for Israel. However, this decline is viewed as temporary, as Trump has proposed a record US$1.5 trillion budget for 2027. Excluding the U.S., global spending surged by 9.2%.

Regional conflicts further accelerated armament. India became the world's fifth-largest spender, increasing expenditure by 8.9% to US$92.1 billion following Operation Sindoor against Pakistan. Pakistan responded with an 11% increase in spending. In Europe, Ukraine allocated 40% of its GDP to defense, while China's spending rose for the 31st consecutive year to US$336 billion. Together, the U.S., China, and Russia accounted for 51% of all global military expenditure.