Global military expenditure increased by 2.9 percent in 2025, reaching $2.89 trillion, according to a report by the Stockholm International Peace Research Institute (SIPRI). This marks the 11th consecutive year of growth, with spending as a share of global GDP rising to 2.5 percent, the highest level since 2009.
US Spending Declines Amid Ukraine Aid Freeze
Despite the overall increase, the United States saw a 7.5 percent drop in military spending, falling to $954 billion. This decline was primarily due to President Donald Trump halting new financial military aid to Ukraine. Over the previous three years, US military funding to Ukraine had totaled $127 billion. However, SIPRI noted that the decline is likely temporary, as US Congress-approved spending for 2026 has risen to over $1 trillion, with potential further increases to $1.5 trillion by 2027.
Europe Leads Global Growth
The main driver of global spending growth was a 14 percent rise in Europe, totaling $864 billion. European NATO members contributed to the sharpest annual growth in Central and Western Europe since the end of the Cold War. Russia and Ukraine also continued to increase their military expenditures in the fourth year of the war.
Other Regional Trends
Israel's military spending fell by 4.9 percent to $48.3 billion as the war in Gaza wound down in 2025. Iran's spending declined for the second consecutive year, dropping by 5.6 percent to $7.4 billion. The top three spenders—the US, China, and Russia—accounted for $1.48 trillion, or 51 percent of global spending.
SIPRI expects the upward trend to continue through 2026 and beyond, given the range of current crises and long-term military spending targets of many states.
