Global military expenditure soared to an unprecedented $2.9 trillion in 2025, marking the 11th consecutive year of growth, according to a new report from the Stockholm International Peace Research Institute (SIPRI). The increase, driven largely by European nations, pushed defense spending as a share of global GDP from 2.4% to 2.5%.
European NATO members collectively shelled out $559 billion on defense last year, with 22 of the 29 allies meeting the alliance’s 2% GDP target. Germany led the charge, boosting its military budget by 24% to $114 billion. This surge comes as President Donald Trump has repeatedly pressed European partners to shoulder more of the burden, even threatening to withdraw from the alliance if they didn’t step up.
Overall, European defense spending hit $864 billion—a 14% jump and the highest level SIPRI has ever recorded for the continent. The increase reflects both Trump’s pressure and the ongoing war in Ukraine, which has reshaped security priorities across the region.
In contrast, U.S. military spending fell 7.5% to $954 billion, the steepest single-year decline on record. The drop was largely due to the Trump administration halting new lethal aid for Ukraine, after allocating $127 billion over the previous three years. However, the dip may be temporary: the Pentagon is eyeing a $1.5 trillion budget for fiscal 2027, signaling a potential rebound.
Russia’s military spending rose 5.9% to $190 billion, while Ukraine increased its defense outlays by 20% to $84.1 billion—a staggering 40% of its GDP. Both countries recorded their highest-ever military expenditure as a share of economic output.
Total NATO spending reached $1.581 trillion in 2025, accounting for 55% of the global total. The alliance’s collective defense push has been a central theme in transatlantic relations, with Trump’s threats to leave NATO fueling debates about European autonomy. For more on related geopolitical tensions, see our coverage of global democratic resilience.
In Asia and Oceania, military spending climbed 8.1% to $681 billion, the region’s fastest growth since 2009. China’s budget rose 7.4% to roughly $336 billion, while Taiwan increased spending by 14% to $18.2 billion—its largest jump since 1988. These increases come amid heightened Chinese military drills around the island and growing concerns over U.S. commitment to the region. Japan also raised its defense budget by 9.7% to $62.2 billion.
“U.S. 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 U.S. support,” said Diego Lopes da Silva, a senior researcher at SIPRI. “As in Europe, US allies in Asia and Oceania are also under pressure from the Trump administration to spend more on their militaries.”
The report underscores a global trend of militarization, with experts predicting continued growth through 2026 and beyond. For context on how defense spending intersects with other policy areas, read about the jet fuel crisis linked to Iran tensions and the malaria resurgence threatening global health gains.
