Amid changing geopolitical relations, wars and rising tensions, the year 2024 saw the steepest rise in worldwide military expenditure since the end of the Cold War, reaching $2.7 trillion, researchers said Monday. The military spending increased worldwide with particularly rapid growth in Europe and the Middle East-- the epicentre of two major conflicts in Gaza and Ukraine-- according to a new report by the Stockholm International Peace Research Institute (SIPRI).
"Over 100 countries around the world raised their military spending in 2024," SIPRI said, according to a Reuters report.
"As governments increasingly prioritise military security, often at the expense of other budget areas, the economic and social trade-offs could have significant effects on societies for years to come," it added.
In real terms, the expenditure rose by 9.4 per cent globally compared to 2023, with 2024 marking the 10th year of consecutive spending increases.
Europe Sees Unprecedented Hike
The data showed that many European countries (including Russia) saw an "unprecedented" rise in their military spending amid war in Ukraine and doubts over U.S. commitment to the NATO alliance. With a 17 per cent hike, European military spending has reached beyond the level recorded at the end of the Cold War, the data showed.
Russia's military expenditure reached an estimated $149 billion in 2024, a 38 per cent increase from 2023 and double the level in 2015. This represented 7.1 per cent of Russia's GDP and 19% of all government spending.
Ukraine's total military expenditure grew by 2.9 per cent to reach $64.7 billion, which amounts to 43 per cent of Russia's spending. At 34 per cent of GDP, Ukraine had the largest military burden of any country in 2024.
"Ukraine currently allocates all of its tax revenues to its military...In such a tight fiscal space, it will be challenging for Ukraine to keep increasing its military spending," SIPRI said.
Germany's spending also increased by 28 per cent, reaching $88.5 billion, overtaking India as the fourth largest in the world. With this, Germany has become the biggest spender in Central and Western Europe for the first time since its reunification.
While some of the increases have been a result of European military aid to Ukraine, it has also been fuelled by concerns of potential US disengagement with the alliance.
"There has really been a shift in European defence policies, where we will see large-scale procurement plans into the arms industry in the years to come," Xiao Liang, a researcher with the SIPRI, told AFP.
Middle East War A Factor
Military budgets have also drastically increased in the Middle East to an estimated $243 billion, an increase of 15 per cent from 2023. Data showed that as Israel continued its offensive in Gaza, its military expenditure surged by 65 per cent to $46.5 billion in 2024.
SIPRI noted that this represented "the steepest annual increase since the Six-Day War in 1967".
However, in contrast, Iran's fell by 10 per cent to $7.9 billion in 2024, "despite its involvement in regional conflicts and its support for regional proxies", the report added.
"The impact of sanctions on Iran severely limited its capacity to increase spending," said SIPRI.
China Also Increased Its Spending
The world's second-largest spender, China, increased its military budget by 7.0 per cent to an estimated $314 billion, "marking three decades of consecutive growth".
China -- which has been investing in modernising its military and expansion of cyberwarfare capabilities and nuclear arsenal -- accounted for half of all military spending in Asia and Oceania.
US Not Behind
Military spending by the US --world's largest spender-- rose by 5.7 per cent to reach $997 billion, which was 66 per cent of total NATO spending and 37 per cent of world military spending in 2024.
Total military spending by the 32 members of the US-led alliance rose to 1.5 trillion as all members increased their spending.
"We've seen in 2024 that 18 out of the 32 NATO countries reached the two-per-cent GDP spending target, which is the highest since the founding of the alliance," Liang said.
Top 5 Countries With The Highest Defence Budgets In 2025
Countries across the globe are strengthening their military forces to assert their power and influence in an increasingly volatile and complex geopolitical world.
Per GlobalFirepower Index data, the US, China, Russia, India and Saudi Arabia are the top five spenders on their military prowess.
United States spends $895,000,000,000 ($895 billion)
China spends $266,850,000,000 ($266.85 billion)
Russia spends $126,000,000,000 ($126 billion)
India spends $75,000,000,000 ($75 billion)
Saudi Arabia spends $74,760,000,000 ($74.76 billion)
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