Overview
- SIPRI, releasing its annual data Monday, reported a 2.9% rise in 2025 to about $2.89 trillion, lifting the military share of the world economy to 2.5%, the highest since 2009.
- Europe drove the increase with a 14% jump to $864 billion, as Germany lifted spending 24% to $114 billion and passed NATO’s 2% of GDP benchmark.
- U.S. outlays fell 7.5% to $954 billion after no new financial military aid for Ukraine, with SIPRI noting a likely rebound as Congress approved more than $1 trillion for 2026 and the White House proposed $1.5 trillion for 2027.
- Asia and Oceania rose 8.1% to $681 billion, led by China’s estimated $336 billion after a 7.4% increase, alongside larger budgets in Japan and Taiwan tied to regional security concerns.
- The war in Ukraine kept Russia’s spending growing to an estimated $190 billion as Ukraine reached about $84.1 billion, roughly 40% of its economy, underscoring how active conflicts drive extreme burdens.