Global military expenditures increased by 2.9% in 2025 despite a 7.5% decrease in the United States, as a result of President Donald Trump’s decision to halt all new military financial aid to Ukraine, according to a report released on Monday by a conflict research institute.
Expenditures reached $2,890 billion in 2025, marking the eleventh consecutive year of growth. They now represent 2.5% of the global gross domestic product (GDP), their highest level since 2009, according to the data from the Stockholm International Peace Research Institute (SIPRI).
“With the numerous current crises and the long-term military spending goals of many countries, this growth is expected to continue in 2026 and beyond,” SIPRI stated in its report.
The top trio, consisting of the United States, China, and Russia, totaled $1,480 billion, accounting for 51% of global expenditures.
The U.S. military budget decreased to $954 billion in 2025, mainly due to the lack of approval for new military assistance credits for Ukraine, as specified in the report. Over the past three years, U.S. military funding for Ukraine amounted to $127 billion.
“The decline in U.S. military spending in 2025 is expected to be short-lived,” SIPRI nuanced.
“Approved military expenditures by the U.S. Congress for 2026 have surpassed $1,000 billion, a substantial increase compared to 2025, and could rise to $1,500 billion in 2027,” the institute noted.
The main driver of global growth was Europe, where expenditures rose by 14% to reach $864 billion.
Russia and Ukraine’s budgets continued to grow for the fourth year of conflict, while the defense effort of European NATO members led to the largest annual increase in Central and Western Europe since the end of the Cold War.
Israel’s expenditures decreased by 4.9% to $48.3 billion with the easing of the Gaza conflict in 2025, while Iran’s expenditures declined for the second consecutive year, dropping by 5.6% to $7.4 billion.
