Global military expenditure surged to a record $2.89 trillion in 2025, marking the 11th consecutive year of growth, according to a new report released by the Stockholm International Peace Research Institute.
The report highlights that military spending rose to 2.5% of global GDP, the highest level since 2009. In real terms, spending increased by 2.9% compared to 2024, although this represents a slowdown from the 9.7% growth recorded the previous year.
Rising tensions fuel global arms buildup
A researcher from SIPRI noted that ongoing conflicts, geopolitical instability, and uncertainty have pushed countries to invest heavily in weapons and defense systems. This trend is expected to continue into 2026 and beyond, driven by long-term military planning and persistent global tensions
U.S. remains largest spender despite decline
The United States retained its position as the world’s largest military spender, although its expenditure fell by 7.5% to $954 billion in 2025. SIPRI attributed the decline partly to the absence of newly approved military aid for Ukraine compared to previous years.
However, analysts suggest the drop may be temporary. The U.S. Congress has already approved a defense budget exceeding $1 trillion for 2026, and a recent proposal by President Donald Trump could push spending to $1.5 trillion by 2027 if adopted.
Europe leads growth in military expenditure
The sharpest increase in spending came from Europe, where military expenditure rose by 14% to $864 billion in 2025. European members of the North Atlantic Treaty Organization collectively spent $559 billion.
According to SIPRI, this marks the fastest growth in military spending among European NATO members since 1953. The surge reflects efforts by countries to strengthen their own defense capabilities, as well as growing pressure from the United States for greater burden-sharing within the alliance.
The report also notes that 22 European countries now spend at least 2% of their GDP on defense, meeting or exceeding NATO’s benchmark.
OutlookWith ongoing conflicts and shifting geopolitical dynamics, global military spending is expected to continue rising in the coming years, reinforcing concerns about an accelerating global arms race.
