Asia Military Spending Hits 16-Year High

(MENAFN) Global defense expenditure crossed a staggering $2.887 trillion in 2025, climbing 2.9% in real terms from the prior year, as Asia and Oceania posted their sharpest single-year military buildup in over 16 years, fresh data released Monday by the Stockholm International Peace Research Institute (SIPRI) reveals.

Spending across Asia and Oceania surged 8.1% to $681 billion — the steepest annual jump since 2009 — underscoring deepening security anxieties across the region's most strategically contested zones.

The United States, China, and Russia retained their positions as the world's three largest defense spenders, collectively accounting for $1.480 trillion, or 51% of all global military expenditure.

China — the second-biggest spender worldwide — expanded its defense budget by 7.4% to $336 billion, marking a 31st straight year of consecutive growth as Beijing pressed ahead with its sweeping military modernization agenda. Notably, SIPRI found no evidence that an intensified anti-corruption crackdown within military procurement had placed any meaningful brake on outlays.

Elsewhere in Asia, India raised its defense spending 8.9% to $92.1 billion, holding firm as the world's fifth-largest military spender, while regional rival Pakistan boosted its budget 11% to $11.9 billion.

Japan's defense expenditure climbed 9.7% to $62.2 billion, reaching 1.4% of GDP — the highest proportion since 1958. Taiwan, meanwhile, recorded its largest annual defense increase since at least 1988, with spending jumping 14% to $18.2 billion, equivalent to 2.1% of GDP. The surge comes against an escalating tempo of military exercises conducted around the island by China's People's Liberation Army.

"US allies in Asia and Oceania such as Australia, Japan and the Philippines are spending more on their militaries, not only due to long-standing regional tensions but also due to growing uncertainty over US support," said Diego Lopes da Silva, a senior researcher with the SIPRI Military Expenditure and Arms Production Program. He further noted that — as seen in Europe — the Trump administration has been applying mounting pressure on Asian-Pacific allies to scale up their defense commitments.

In the Middle East, total military expenditure reached an estimated $218 billion in 2025, barely edging 0.1% above 2024 levels. Most major regional spenders increased their budgets, with Israel serving as the notable exception — its defense spending contracting 4.9% to $48.3 billion following a reduction in combat operations in Gaza after the January 2025 ceasefire agreement with Hamas. Despite the dip, Israel's military expenditure remains 97% above its 2022 baseline.

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