Worldwide military expenditure grew by 2.9 per cent in 2025, even as spending by the US declined 7.5 per cent following a pause in fresh military assistance to Ukraine under President Donald Trump, according to a report released on Monday.
Total global defence outlays reached USD 2.89 trillion, marking the 11th consecutive year of growth. Military spending as a share of global GDP rose to 2.5 per cent, its highest level since 2009, data from Stockholm International Peace Research Institute showed.
The institute said that ongoing geopolitical tensions and long-term defence modernisation plans are likely to sustain this upward trend through 2026 and beyond.
The US, China and Russia remained the top three spenders, together accounting for USD 1.48 trillion, or 51 per cent of global military expenditure. US defence spending fell to USD 954 billion in 2025, largely due to the absence of new funding commitments for Ukraine, after allocating USD 127 billion over the previous three years.
However, SIPRI indicated the dip may be temporary, with US Congressional approvals for 2026 already exceeding USD 1 trillion and projections suggesting a potential rise to USD 1.5 trillion by 2027.
Europe emerged as the primary driver of global spending growth, with a 14 per cent increase pushing regional expenditure to USD 864 billion. Defence budgets in Russia and Ukraine continued to expand in the fourth year of the war, while NATO’s European members recorded their sharpest annual rise in Central and Western Europe since the end of the Cold War.
Elsewhere, Israel’s military spending declined 4.9 per cent to USD 48.3 billion as the Gaza conflict eased in 2025, while Iran’s defence outlays dropped 5.6 per cent to USD 7.4 billion, marking a second consecutive annual fall. |
