Published On 4/27/2026
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Last update: 05:54 (Mecca time)
Global military spending increased by 2.9% during 2025 to reach about $2.89 trillion, marking a continuous increase for 11 years, despite the decline in US military spending, according to a new report by the Stockholm International Peace Research Institute.
The report indicated that global military spending amounted to the equivalent of 2.5% of global gross domestic product, the highest level since 2009, in an indicator that reflects the continuing international tensions and conflicts that push countries to enhance their military capabilities.
Although the pace of growth in 2025 was slower compared to an increase of 9.7% in 2024, the general trend is still upward.
The institute added – in its report – that “given the scope of the current crises, as well as the long-term military spending goals of many countries, this growth is likely to continue in 2026 and beyond.”
The three countries with the highest military spending – the United States, China and Russia – accounted for $1.48 trillion, equivalent to 51% of global spending.
Temporary American decline
The United States – the largest military spender in the world – recorded a decline in its military spending by 7.5%, reaching $954 billion in 2025.
The report attributed this decline mainly to US President Donald Trump stopping approving new military financial aid packages for Ukraine during the same year.
During the previous three years, total US military funding for Ukraine amounted to about $127 billion, which made stopping this aid a key factor in reducing spending.
However, the report expected this decline to be temporary, as the US Congress has already approved defense spending exceeding one trillion dollars for 2026, with the possibility of it rising to about $1.5 trillion by 2027 if new budget proposals are adopted.
Washington also continued to invest in its nuclear and conventional capabilities with the aim of maintaining its military superiority and deterring China in the Indo-Pacific region.
Europe leads the global increase
Europe was the largest contributor to global military spending growth during 2025, as spending on the continent rose by 14% to reach $864 billion, the highest annual rate of increase in Central and Western Europe since the end of the Cold War.
This rise is directly linked to the ongoing war in Ukraine, and to extensive rearmament efforts within NATO countries.
Together, the European member states of the alliance spent about $559 billion, with 22 of them allocating at least 2% of their gross domestic product to defence.
The report stated that Germany has become the largest military spender in Europe, after increasing its spending by 24% to reach $114 billion.
The war between Russia and Ukraine continues
Russia and Ukraine also continued to increase their military spending for the fourth year in a row since the outbreak of war between them.
Russian military spending rose by 5.9% to reach $190 billion, while Ukrainian spending increased by 20% to reach $84.1 billion, which is equivalent to about 40% of the country’s gross domestic product.
The report indicated that the two countries recorded the highest levels of military spending compared to the size of their government budgets, with expectations that the rise will continue if the war continues.
Russia is likely to benefit from increased oil revenues, while Ukraine expects to receive large loans from the European Union to support its military spending.
Asia records fastest growth since 2009
The Asia and Oceania region witnessed remarkable growth in military spending, rising by 8.1% to reach $681 billion, the fastest annual growth rate in the region since 2009.
China increased its military spending by 7.4% to reach $336 billion, while Japan increased its spending by 9.7%, and Taiwan increased its spending by 14%.
Decline in Iran and Israel
The report stated that military spending in the Middle East remained relatively stable at about $218 billion during 2025.
Iran recorded a decrease in its military spending for the second year in a row by 5.6%, reaching $7.4 billion, which the report attributes to economic pressures and high inflation rates, noting that the official figures may not reflect the true volume of spending, due to the use of oil revenues outside the budget to finance military programs.
Israeli military spending also declined by 4.9% to reach $48.3 billion, coinciding with a decline in the intensity of military operations in the Gaza Strip during the year 2025.
