Global military expenditures in 2024 saw the highest surge since the end of the Cold War, reaching $2.7 trillion, according to the Stockholm International Peace Research Institute (SIPRI).
This rise in military spending was driven by escalating conflicts and mounting geopolitical tensions across all world regions, most notably in Europe and the Middle East.
Military Spending Soaring
According to a new report published by SIPRI, the global military expenditure surged to $2718 billion in 2024, its highest rate since the end of the Cold War. This marks the 10th consecutive annual rise. The share of global GDP allocated to military spending (military burden) increased to 2.4% in 2024, with the world’s largest 15 spenders increasing their expenditures.
“Over 100 countries around the world raised their military spending in 2024. As governments increasingly prioritize military security, often at the expense of other budget areas, the economic and social trade-offs could have significant effects on societies for years to come,” Xiao Liang, Researcher with the SIPRI Military Expenditure and Arms Production Program, noted.
Russia-Ukraine War Effect
Europe was the main contributor to the global rise in military spending, with defense expenditures increased by 17% to reach $693 billion. This was a direct result of the ongoing war in Ukraine, as European countries, including Russia, kept increasing their military spending throughout 2024.
In Russia, military expenditures amounted to an estimated $149 billion in 2024, a 38% increase from 2023. This accounted for 7.1% of Russia’s GDP and 19% of all Russian government spending.
As for Ukraine, the total military spending increased by 2.9% to reach $64.7 billion, accounting for 34% of the country’s GDP. This also marks the largest military burden of any country in 2024.
In the light of this, Diego Lopes da Silva, Senior Researcher with the SIPRI Military Expenditure and Arms Production Program, said: “Russia once again significantly increased its military spending, widening the spending gap with Ukraine.”
He added: “Ukraine currently allocates all of its tax revenues to its military. In such a tight fiscal space, it will be challenging for Ukraine to keep increasing its military spending.”
European Surge
Many countries in Central and Western Europe embarked on implementing new spending pledges and large-scale procurement plans in 2024, recording unprecedented increases in their military expenditures. In Germany, defense spending rose by 28% to reach $88.5 billion, overtaking India as the fourth largest spender in the world and the first in Central and Western Europe for the first time since its reunification.
Meanwhile, Poland’s military spending recorded a 31% growth to reach $38 billion, accounting for 4.2% of the country’s GDP.
“The latest policies adopted in Germany and many other European countries suggest that Europe has entered a period of high and increasing military spending that is likely to continue for the foreseeable future,” Lorenzo Scarazzato, Researcher with the SIPRI Military Expenditure and Arms Production Program, said.
NATO Spending
2024 saw record hikes in NATO military expenditure, with the total spending reaching $1506 billion, representing 55% of global military expenditure. According to SIPRI, 18 out of 32 NATO members spent at least 2% of their GDP on their militaries, the highest number since the bloc adopted the spending guideline in 2014.
The US accounted for 66% of total NATO spending and 37% of the world military expenditure in 2024, with $997 billion, a 5.7% increase. The US dedicated a substantial portion of its budget to modernizing its military capabilities and nuclear arsenal to maintain a strategic advantage over Russia and China.
“The rapid spending increases among European NATO members were driven mainly by the ongoing Russian threat and concerns about possible US disengagement within the alliance,” Jade Guiberteau Ricard, Researcher with the SIPRI Military Expenditure and Arms Production Program, commented.
Middle East Hikes
The SIPRI report pointed to a 15% increase in the Middle East military spending in 2024, driven by the war in Gaza and geopolitical tensions in the region. In 2024, Israel increased its spending by 65% to reach $46.5 billion, the steepest annual increase since the Six-Day War in 1967. This marks the second largest military burden in the world, accounting for 8.8% of the GDP.
Lebanon also increased its military spending by 58% to record $635 billion. On the contrary, Iran’s military expenditure declined by 10% to $7.9 billion in 2024, due to sanctions.
Meanwhile, SIPRI report noted that Saudi Arabia was the Middle East’s largest military spender in 2024 and the seventh globally, with military spending growing by 1.5% to reach $80.3 billion.
With regards to this, Zubaida Karim, Researcher with the SIPRI Military Expenditure and Arms Production Program, said: “Despite widespread expectations that many Middle Eastern countries would increase their military spending in 2024, major rises were limited to Israel and Lebanon.”
Asia Arms Race
The military spending of China increased by 7% to reach $314 billion. China, the second largest military spender in the world, accounted for 50% of all military expenditure in Asia and Oceania, modernizing its military and expanding its cyberwarfare capabilities and nuclear arsenal.
On the other hand, Japan saw its largest annual increase since 1952, recording a 21% growth to reach $55.3 billion in 2024. India came as the 5th global spender, with a 1.6% increase to reach $86.1 billion. Taiwan also increased its military expenditure by 1.8% to $16.5 billion.
The Director of the SIPRI Military Expenditure and Arms Production Program, Nan Tian, noted: “Major military spenders in the Asia–Pacific region are investing increasing resources into advanced military capabilities. With several unresolved disputes and mounting tensions, these investments risk sending the region into a dangerous arms-race spiral.”
