Overview
- SIPRI, which released its annual report Monday, said worldwide defense outlays reached about $2.9 trillion in 2025, up 2.9% for an eleventh straight yearly increase.
- Europe led the surge with a 14% jump to $864 billion, a pace researchers say is the fastest since 1953 as NATO countries rearm under pressure from the Ukraine war.
- Germany lifted spending 24% to $114 billion and Spain rose 50% to $40.2 billion, pushing both above NATO’s 2% of GDP guideline for the first time in decades.
- The United States spent $954 billion, down 7.5% after no new Ukraine aid was approved, while Congress has already set 2026 outlays above $1 trillion and could reach $1.5 trillion in 2027 if President Trump’s plan is adopted.
- Asia-Pacific totaled about $681 billion, up roughly 8.1%, led by China at $336 billion and sharp increases in Japan and Taiwan, and SIPRI expects the global rise to continue into 2026 as governments weigh defense against social and climate needs.