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Global Defense Spending Soars to All-Time High
(MENAFN) Global military expenditure soared to an all-time high of nearly $3 trillion in 2025, driven overwhelmingly by a sharp European buildup even as the United States trimmed its own defense outlay, according to a landmark report released Monday by the Stockholm International Peace Research Institute (SIPRI).
Worldwide defense spending climbed 2.9% in real terms to reach $2.887 trillion — the 11th straight annual increase — pushing the global military burden to 2.5% of GDP. SIPRI analysts attributed the sustained upward trajectory to a confluence of active conflicts and deepening geopolitical fault lines across multiple regions.
Europe Leads the Surge
The European continent posted the largest regional increase of any area tracked, with collective spending jumping 14% to $864 billion. SIPRI tied the acceleration directly to the Ukraine conflict, heightened tensions with Russia, and what it described as "the ongoing pursuit of European self-reliance alongside increasing pressure from the United States to strengthen burden sharing within the alliance."
European NATO members combined spent $559 billion in 2025. Germany's defense budget surged 24% to $114 billion, while Spain recorded a dramatic 50% jump to $40.2 billion.
US Spending Dips Despite Planned Expansion
American military expenditure bucked the global trend, falling 7.5% to $954 billion. SIPRI attributed the decline primarily to the Trump administration's decision not to authorize new Ukraine assistance packages — a stark contrast to prior years when $127 billion in direct military support had been approved. Washington has nonetheless continued arms deliveries through the NATO-coordinated PURL program, with allied nations covering associated costs.
The dip may prove short-lived. Last week, Pentagon officials confirmed that President Donald Trump is pushing for a $1.5 trillion military budget to fund the proposed Golden Dome missile defense system, expanded AI capabilities, and a new class of battleships.
Russia, Ukraine, and the Indo-Pacific
Russia's defense expenditure grew 5.9% to $190 billion, while Ukraine raised its spending by 20% to $84.1 billion — a staggering 40% of GDP — vaulting the war-battered nation to seventh place among the world's largest military spenders.
In the Indo-Pacific, China expanded its military budget by 7.4% to $336 billion. Japan increased outlays by 9.7% to $62.2 billion, and Taiwan raised its defense spending by 14% to $18.2 billion, reflecting growing regional anxieties.
Moscow Pushes Back
The Kremlin has repeatedly denounced what it characterizes as reckless EU militarization, insisting the buildup is deliberately directed against Russia. Spokesman Dmitry Peskov also alleged that European messaging is engineered to cast Russia as a "model external enemy" in order to distract domestic audiences from internal political and economic difficulties.
Worldwide defense spending climbed 2.9% in real terms to reach $2.887 trillion — the 11th straight annual increase — pushing the global military burden to 2.5% of GDP. SIPRI analysts attributed the sustained upward trajectory to a confluence of active conflicts and deepening geopolitical fault lines across multiple regions.
Europe Leads the Surge
The European continent posted the largest regional increase of any area tracked, with collective spending jumping 14% to $864 billion. SIPRI tied the acceleration directly to the Ukraine conflict, heightened tensions with Russia, and what it described as "the ongoing pursuit of European self-reliance alongside increasing pressure from the United States to strengthen burden sharing within the alliance."
European NATO members combined spent $559 billion in 2025. Germany's defense budget surged 24% to $114 billion, while Spain recorded a dramatic 50% jump to $40.2 billion.
US Spending Dips Despite Planned Expansion
American military expenditure bucked the global trend, falling 7.5% to $954 billion. SIPRI attributed the decline primarily to the Trump administration's decision not to authorize new Ukraine assistance packages — a stark contrast to prior years when $127 billion in direct military support had been approved. Washington has nonetheless continued arms deliveries through the NATO-coordinated PURL program, with allied nations covering associated costs.
The dip may prove short-lived. Last week, Pentagon officials confirmed that President Donald Trump is pushing for a $1.5 trillion military budget to fund the proposed Golden Dome missile defense system, expanded AI capabilities, and a new class of battleships.
Russia, Ukraine, and the Indo-Pacific
Russia's defense expenditure grew 5.9% to $190 billion, while Ukraine raised its spending by 20% to $84.1 billion — a staggering 40% of GDP — vaulting the war-battered nation to seventh place among the world's largest military spenders.
In the Indo-Pacific, China expanded its military budget by 7.4% to $336 billion. Japan increased outlays by 9.7% to $62.2 billion, and Taiwan raised its defense spending by 14% to $18.2 billion, reflecting growing regional anxieties.
Moscow Pushes Back
The Kremlin has repeatedly denounced what it characterizes as reckless EU militarization, insisting the buildup is deliberately directed against Russia. Spokesman Dmitry Peskov also alleged that European messaging is engineered to cast Russia as a "model external enemy" in order to distract domestic audiences from internal political and economic difficulties.
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