The Stockholm International Peace Research Institute (SIPRI) has published its global military expenditure report for 2024. The eagerly awaited report reveals that military expenditure worldwide has increased by a striking 9,4% compared to the previous year. 2,72 trillion dollars This increase stands out as the largest annual increase recorded since the end of the Cold War.
According to SIPRI data, military spending around the world has been increasing for the tenth year in a row. The basis for this acceleration is the ongoing bloody conflicts, especially in Ukraine and Gaza, as well as the increasing geopolitical tensions in all regions, especially in Europe and the Middle East. The institute's researchers found that 2024% of the total global economic power will be spent on military purposes in 2,5.
“More than 100 countries around the world have increased their military spending by 2024,” Xiao Liang, a researcher at SIPRI’s Military Expenditure and Weapons Production Program, explained. “As governments increasingly prioritize military security, often at the expense of other areas of the budget, the economic and social trade-offs could have significant impacts on societies in the coming years,” Liang warned.
Leading Spenders: US, China and Russia in the Top Three
The US continues to lead the list of countries that lead global military spending with a share of 37%. The US, which will spend $2024 billion on military spending in 997, is followed by China with an estimated spending of $314 billion. Russia is in third place with a spending of $149 billion, while Germany ($88,5 billion) and India ($86,1 billion) complete the top five. These five countries account for 60% of total military spending worldwide.
NATO members’ total military spending has reached $1,51 trillion, exceeding 55% of global spending. Eighteen of the alliance’s 32 members have met or exceeded the 18% of gross domestic product (GDP) defense spending target that NATO leaders committed to in Wales in 2014. This number represents a significant increase from just 2 member states in 2023.
The Impact of Conflict: Rising Spending by Russia, Ukraine, and Israel
Russia’s military spending has increased by a staggering 2023% compared to 38, reaching an estimated $149 billion. This figure is more than double what Russia spent in 2015 and represents 7,1% of the country’s GDP and 19% of total government spending. Ukraine, meanwhile, has risen to become the eighth-largest military spender globally, with a spending of $64,7 billion. This spending equates to 34% of Ukraine’s GDP and represents the highest military burden of any country in 2024. According to SIPRI’s calculations, Ukraine’s defense spending in 2024 is an incredible 1.251% higher than a decade ago.
“Ukraine currently allocates its entire tax revenue to its military,” said Diego Lopes da Silva, senior researcher at SIPRI’s Military Expenditure and Weapons Production Program, outlining the country’s difficult financial situation. “In such a tight fiscal environment, it will be difficult for Ukraine to continue increasing its military spending,” da Silva predicted.
As Ukraine’s neighbors also beef up their war machines, Europe’s overall military spending has increased by 17% to $693 billion, bringing the continent’s defense budgets past Cold War levels. Germany has emerged as Western Europe’s top military spender for the first time since reunification, with spending up 28% year-on-year to $88,5 billion.
The Middle East also saw significant increases due to the first direct military conflict between Israel and Iran and Israel’s ongoing war in Gaza. Israel’s military spending jumped by a whopping 65% to $46,5 billion, representing 8,8% of the country’s GDP, due to the war in Gaza and tensions with Hezbollah.
Rising Tensions and Arms Race in Asia
China has continued a 30-year streak of uninterrupted annual increases in military spending, amid increasing rhetoric on Taiwan. Beijing’s military spending is now 59% higher than a decade ago. Japan’s military spending also rose 21% last year to $55,3 billion, the largest annual increase since 1952.
“With so many unresolved conflicts and rising tensions, these investments risk plunging the region into a dangerous arms race spiral,” warned Nan Tian, director of SIPRI’s Asia Military Expenditure and Weapons Production Programme.
Worldwide per capita military spending was $334 last year, the highest level since the end of the Cold War.
The SIPRI report concludes by warning that commitments by many countries to further increase military spending will raise critical questions about fiscal sustainability and the diversion of resources away from social and development priorities. This record increase in global military spending clearly demonstrates that geopolitical tensions around the world are escalating and the international security environment is becoming increasingly complex.
