For 11 consecutive years, global military spending has been on the rise, and that continued in 2025. Governments around the world spent a total of $2.887 trillion on ships, aircraft, missiles and other weapons, according to new data from the Stockholm International Peace Research Institute (SIPRI), once again setting a record as the highest level of military spending ever recorded. “This clearly shows how states are responding to current wars, tensions and geopolitical uncertainty,” said Xiao Liang of the Stockholm Institute’s Military Expenditure and Arms Production Program. In 2025, fighting continued in Ukraine and Gaza. Meanwhile, other conflicts, such as the war in Sudan, contributed to global instability. “As all these crises continue, and long-term spending plans are already in place in many countries, this trend is likely to continue not only until 2026, but also beyond.”
Europe is responsible for a large portion of the global increase in military spending in 2025. Spending there rose by 14 percent, to $864 billion. Russia’s invasion of Ukraine in 2022 changed the way European countries view their security. Many European governments fear that Russia could pose a threat not just to Ukraine. In response, European countries — especially NATO members — are increasing defense spending to strengthen their armed forces and deter further aggression. “This is undoubtedly the most important driver,” Liang said. “In recent years, the main factor in Europe has been Russia’s and Ukraine’s own military spending, and it will continue to grow in 2025. But when it comes to total spending, the focus is increasingly shifting to Central and Western Europe, where plans for militarization and increased allocations are starting to take hold. Last year, these countries recorded the highest annual growth since the end of the Cold War.” Spain’s defense budget increased by 50 percent, Poland’s by 23 percent and Italy’s by 20 percent.
GERMANY LEADS IN EUROPE
Among European countries, Germany was the biggest spender in 2025: this item of the national budget increased by 24 percent to $114 billion, making Germany the fourth largest in the world. For the first time since 1990, German military spending exceeded the NATO reference value of 2 percent of GDP and reached 2.3 percent. To finance it, the German parliament changed the rules in 2025. The government is now allowed to borrow more to increase defense spending. “I don’t think Germany’s military capabilities are growing as fast as the figures suggest,” Liang said. “But in the long run, Germany is becoming stronger and more militarily independent.”
In addition to Russia’s war against Ukraine, the increase in German spending also reflects uncertainty about security guarantees from the U.S. Like other NATO allies, Berlin is seeking to reduce its dependence on Washington — especially after U.S. President Donald Trump again called into question mutual defense commitments within the alliance.
The US SPENT LESS
The United States’ spending on its armed forces totaled $954 billion in 2025, down 7.5 percent from the previous year. The main reason for the decline was that the US Congress did not approve new military aid to Ukraine as it had done in the previous three years. Even if it was funds for arming another country, SIPRI counts such aid as a donor country’s military spending. “This downward trend is now disappearing,” said Liang. “The new 2026 budget approved by the US Congress sees strong increases in military spending again. With the war in the Middle East and rising tensions in Asia, this slowdown is likely to be short-lived.” According to the Pentagon, the first six days of the war with Iran in 2026 alone cost the US $11.3 billion. Even in 2025, the US continued to invest heavily in nuclear and conventional weapons, with the aim of maintaining military supremacy and deterring China in the Indo-Pacific region – which is one of the main goals of US security strategy.
America was the world’s largest military spender in 2025, accounting for about a third of global defense spending. But as other countries spend more and more, the U.S. share has been gradually declining since 2020.
ARE WEAPONS A GUARANTEE FOR PEACE?
Some argue that a more equal distribution of military power could make the world safer. Liang disagrees. “It just means more armaments and more weapons,” he said. “The new arms race reduces trust and increases the risk of misjudgment,” which makes the world more dangerous. China has maintained second place in the world military spending rankings and has consistently increased its defense budget for 31 years — longer than any other country tracked by SIPRI. Spending rose by 7.4 percent in 2025, as Beijing continued to implement a plan to modernize its armed forces that extends to 2035. Last year, China tested prototypes of new sixth-generation fighter jets and moved closer to introducing its bomber.
China’s military buildup has major regional implications, Liang said. “China’s military modernization and tensions with its neighbors have long encouraged greater spending in the region, especially in countries like Japan, Taiwan and the Philippines,” he said. “But 2025 was also about changing the way America’s allies think about security. There is growing pressure on countries like Australia, Japan and Taiwan to invest more in defense and become more independent.”
IT’S NOT JUST A FEAR OF CHINA
Japan’s military spending in 2025 will reach $62.2 billion, a 9.7 percent increase from 2024. The increase is part of a plan to strengthen the armed forces launched in 2022, driven by a perceived military threat from China and North Korea. A major turning point for Japan is the expansion of its missile capabilities and drone programs, which is propelled Japan to the status of one of the world’s leading military powers in terms of spending. In 2025, India was the world’s fifth-largest military spender. Its defense budget rose 8.9 percent to $92.1 billion, largely due to tensions with China. But China was not the only factor, Liang said. “In 2025, the war between India and Pakistan also broke out. That was an important reason, and India invested heavily in aviation and unmanned systems that played a major role in that conflict,” he said.
TANKS IN PLACE OF SCHOOLS
The share of military spending in a country’s economy – often called the military burden – shows how much of a country’s wealth is spent on defense, rather than on other needs. It is one of the clearest indicators of the real economic cost of military spending compared to other countries. This share rose to about 2.5 percent of global GDP in 2025, the highest level since 2009. This means that governments are not only spending more, but are also devoting a larger share of their overall economic output to the military. The change has implications beyond security policy. “This will have consequences in other areas of public spending,” Liang said. “Governments may cut social services or development aid. So it’s not just about wars and weapons, it has profound consequences for societies as a whole.” (DW)