Global military spending continued to rise in 2025 for the eleventh consecutive year, reaching $2.9 trillion, with the United States, China, and Russia accounting for over half of the total. Despite a 2.9% decrease in U.S. military spending, Europe and Asia saw increases, with Europe experiencing a 14% rise to $864 billion, mainly driven by ongoing conflict in Ukraine and U.S. disengagement from the region.
Germany, the fourth-largest spender globally, increased military expenditures by 24% to $114 billion, while Spain raised spending by 50% to $40.2 billion, exceeding 2% of GDP for the first time since 1994. Russia’s spending rose by 5.9% to $190 billion, Ukraine’s by 20% to $84.1 billion (40% of GDP), and the U.S. allocated over $1 trillion for 2026.
Asia/Oceania saw a significant increase in military spending of 8.5%, totaling $681 billion, led by China’s steady growth over the past three decades. Japan raised its military spending by 9.7% to $62.2 billion in 2025, reaching 1.4% of GDP – the highest since 1958. Taiwan also saw a 14% increase to $18.2 billion.
Military expenditures in the Middle East marginally increased by 0.1% to $218 billion, with some countries like Israel and Iran reducing their spending. Iran’s decrease was mainly due to high inflation, while Israel’s 4.9% drop to $48.3 billion followed a ceasefire with Hamas in January 2025.
Despite ongoing tensions worldwide, the data suggests a global increase in military spending, pointing to heightened security concerns and the need for stronger defense forces in response to escalating conflicts and geopolitical uncertainties.



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