Overview
- SIPRI, which released its annual report Monday, said global outlays rose 2.9% in 2025 to about $2.89 trillion, equal to 2.5% of world GDP and the 11th straight yearly increase.
- Europe led the gains with a 14% jump to $864 billion, with Germany reaching the NATO 2% threshold and Spain lifting its budget by 50% as governments rearmed.
- U.S. spending fell 7.5% to $954 billion because no new Ukraine aid passed in 2025, with Congress approving more than $1 trillion for 2026 and a $1.5 trillion proposal for 2027 pointing to a rebound.
- Russia lifted outlays to about $190 billion and Ukraine to $84.1 billion, which equals roughly 40% of Ukraine’s economy, underscoring how the war is straining both states.
- China spent an estimated $336 billion as Asia‑Oceania rose 8.1% to $681 billion, and together the U.S., China and Russia accounted for about 51% of the world total.