An eleventh consecutive year of increase in global military spending. Worldwide military expenditures reached $2.887 trillion in 2025, representing a 2.9% increase compared to 2024. The three top spenders on armaments – the United States, China, and Russia – collectively spent $1.480 trillion, which is 51% of the global total, according to new data released on Monday by the Stockholm International Peace Research Institute (Sipri).
Countries responded to another year of wars, uncertainties, and geopolitical upheavals with large-scale armament programs, noted Xiao Liang, a researcher at Sipri’s Military Expenditure and Arms Production Program, who believes the increase is likely to continue until 2026 and beyond. Here are the key highlights from this report.
Decrease in the United States “expected to be short-lived”
Despite the global increase, military spending in the United States decreased by 7.5% in 2025, totaling $954 billion. This decline is mainly attributed to the lack of new military financial aid to Ukraine approved during the year, as explained by Sipri.
This decrease is expected to be short-lived, as approved expenditures by the U.S. Congress for 2026 exceed $1 trillion, with a substantial increase compared to 2025. These expenditures could reach $1.5 trillion in 2027 if President Trump’s latest budget proposal is adopted.
14% Increase in Europe
In 2025, the main contributor to the rise in global military spending was a 14% increase in Europe, reaching $864 billion. Russia’s expenditures (+5.9% to $190 billion) and Ukraine’s (+20% to $84.1 billion) continued to rise in this fourth year of war.
The ongoing rearmament efforts of the 29 European NATO member states also significantly contributed to this increase, as they collectively spent $559 billion in 2025, with 22 of them allocating at least 2% of their GDP to military spending. Germany became the largest spender, with a 24% year-over-year increase, reaching $114 billion. France’s expenditures increased by 1.5%, totaling $68 billion.
“Asia-Pacific Records Fastest Growth Since 2009”
Military expenditures in the Asia-Pacific region amounted to $681 billion in 2025, an 8.1% annual increase – the most significant since 2009. China, the world’s second-largest spender, increased its military spending by 7.4% to $336 billion, marking the 31st consecutive annual increase as part of its military modernization program.
Taiwan’s military spending rose by 14% to $18.2 billion (2.1% of GDP), the highest annual increase since at least 1988, amid escalating military exercises led by the Chinese People’s Liberation Army.
Middle East Stability
Military spending in the Middle East reached an estimated $218 billion, just 0.1% higher than in 2024. Israel’s military expenditures decreased by 4.9% to $48.3 billion, although still higher than in 2022.
Iran’s military spending officially decreased for the second consecutive year, falling by 5.6% to $7.4 billion in 2025. However, this figure may not reflect the actual level of Iranian spending as the country also uses off-budget oil revenues to finance its military, particularly in missile and drone production.
