Global military spending rose for the 11th year in a row in 2025. Governments spent a total of $2.887 trillion (€2.47 trillion) on ships, aircraft, missiles and other weapons, according to new data from the Stockholm International Peace Research Institute (SIPRI). That's the highest level of military spending ever recorded.
"This really speaks to countries' reactions to ongoing wars, tensions and geopolitical uncertainty," said Xiao Liang, a researcher in SIPRI's Military Expenditure and Arms Production Programme. Fighting continued in Ukraine and Gaza in 2025, while conflicts such as the war in Sudan also added to global instability. "With all these crises still ongoing, and many countries' long‑term spending plans already locked in, this trend will probably continue through 2026 and beyond."
Much of the global rise in military spending in 2025 was driven by Europe. Spending there rose by 14% to $864 billion. Russia's full‑scale invasion of Ukraine in early 2022 has changed how European countries see their own security. Many European governments fear that Russia could pose a wider threat beyond Ukraine. In response, European states — especially NATO members — are increasing defense spending to strengthen their militaries and deter further aggression.
Smoke over Kyiv after a Russian missile and drone strikeImage: Maxym Marusenko/NurPhoto/IMAGO
"That is definitely the biggest driver," Xiao Liang said. "In recent years, we've seen Russia's and Ukraine's own spending as the main factor in Europe. Their spending was still rising in 2025. But in terms of overall spending, the focus has shifted more towards Central and Western European countries, as their militarization and spending plans begin to materialize. They recorded the highest annual growth since the end of the Cold War last year." Spain's defense budget jumped by 50%, Poland's by 23% and Italy's by 20%.
Germany retools its budget rules to fund military buildup
Among European countries, Germany was the biggest military spender in 2025. Its defense budget rose by 24% to $114 billion, making it the world's fourth largest. For the first time since 1990, German military spending passed the NATO benchmark of 2% of GDP, reaching 2.3%. To pay for this, Germany's parliament changed its fiscal rules in 2025. Military spending above 1% of GDP is now exempt from Germany's strict debt brake, allowing the government to borrow more to fund defense increases.
"I don't think that Germany's military capability is rising as fast as the spending figure suggests," Liang said. "But I think in the long term, Germany is becoming more powerful and more independent militarily."
SIPRI researcher Xiao Liang warns that rising global military spending risks accelerating a new and dangerous arms raceImage: DW
Beyond Russia's war in Ukraine, Germany's spending rise also reflects uncertainty about future US security guarantees. Like other NATO allies, the German government is seeking to reduce its reliance on the United States — especially after US President Donald Trump again questioned the alliance's collective defense commitments.
Why US military spending fell in 2025
The US spent less on its military — just $954 billion in 2025. That's 7.5% less than the year before. The main reason for this decline was that the US Congress approved no new military aid for Ukraine, unlike in the previous three years. SIPRI counts such aid as part of the donor country's military spending.
"That trend is already turning," said Liang. "The new 2026 budget approved by the US Congress is signaling a big increase. With the war in the Middle East and tensions rising in Asia, the slowdown is probably going to be short-lived." According to the Pentagon, the first six days of the 2026 Iran war alone cost the US $11.3 billion.
Even in 2025, the US continued to invest heavily in nuclear and conventional weapons, aiming to maintain military dominance and deter China in the Indo‑Pacific — a key goal of US national security strategy.
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The US remained the world's biggest military spender in 2025, accounting for about one‑third of global defense spending. But its share has been shrinking steadily since 2020.
"This is less about the biggest spenders cutting back," Liang said, "and more about widespread increases elsewhere, especially among middle‑power countries."
Some argue that a more evenly distributed military balance could make the world safer. Liang disagrees. "That just means more arms and more weapons," he said. "A new arms race reduces trust and increases the risk of miscalculation" — and that makes the world more dangerous.
China remained the world's second‑largest military spender and has increased its defense budget every year for the past 31 years — longer than any other country tracked by SIPRI. Spending rose by 7.4% in 2025 as China pushed ahead with its plan to modernize its armed forces by 2035. Last year, China tested new sixth‑generation fighter jet prototypes and moved closer to deploying its H‑20 stealth bomber.
China's military buildup has major regional consequences, Liang said. "China's military modernization and tensions with its neighbors have long driven higher spending in the region, especially in countries like Japan, Taiwan and the Philippines," he said. "But in 2025, this was also about changing security thinking among US allies. Countries such as Australia, Japan and Taiwan are under growing pressure to spend more on defense and become more selfreliant."
China’s expanding missile arsenal underscores how rising military spending is reshaping security across the Indo‑PacificImage: Zhang Cheng/Xinhua/IMAGO
Japanese military spending reached $62.2 billion in 2025, a 9.7% increase from 2024. The rise supports a build-up plan launched in 2022, driven by security concerns about China and North Korea. Expanding missile and drone programs signal a major shift, putting Japan on track to become one of the world's top military spenders.
India was the world's fifth‑largest military spender in 2025. Its defense budget rose by 8.9% to $92.1 billion, mainly due to tensions with China. But China wasn't the only factor, Liang said. "There was also a war between India and Pakistan in 2025. That was a big factor, and they invested heavily in aerospace and drones, which were used a lot in that conflict."
The wider cost of militarization
A country's military spending as a share of its economy — often called the military burden — shows how much of a society's wealth is being directed toward defense rather than other needs. It is one of the clearest ways to compare the real economic cost of military spending between countries.
This burden rose to an estimated 2.5% of global GDP in 2025, the highest level since 2009. This means governments are not only spending more in absolute terms but are also devoting a larger share of their economic output to the military.
That shift has consequences beyond security policy. "This will affect other areas of public spending," Liang said. "Governments may cut social services or development aid. So, this isn't only about wars and weapons — it will have deep effects across societies."
Edited by: Frank Suyak, Don Mac Coitir
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