In 2024, global military expenditure reached a record-breaking $2.7 trillion, marking a 9.4% increase from the previous year. This is the steepest year-on-year rise in military spending since the end of the Cold War. Defense budgets have increased significantly, which reflects escalating geopolitical tensions around the world. There are notable increases in Europe and the Middle East. The top five military spenders are the United States, China, Russia, Germany, and India. These countries accounted for 60% of the global total. This highlights the dominance of these nations in military investment, according to SIPRI report.
EUROPE’S MILITARY SPENDING SURGE
Europe was the primary contributor to the global rise in military expenditure. Military spending across the continent (including Russia) grew by 17%, totaling $693 billion. The ongoing war in Ukraine was a major factor. It pushed European countries to significantly boost their defense budgets. Russia’s military spending surged by 38% to $149 billion, which now accounts for 7.1% of its GDP. This increase reflects the country’s ongoing military activities in Ukraine and other regional conflicts.
Ukraine, despite its limited resources, also saw a rise in military expenditure, which grew by 2.9% to $64.7 billion. Ukraine allocated nearly half of Russia’s military budget. Defense spending comprised 34% of its GDP. This was the highest military burden of any nation in 2024.
GERMANY AND POLAND LEAD EUROPEAN GROWTH
Germany’s military spending saw a remarkable 28% increase, reaching $88.5 billion, making it the largest military spender in Central and Western Europe and the fourth largest globally. The surge is attributed to a €100 billion special defense fund set up in 2022. Poland also followed suit, increasing its military expenditure by 31%, reaching $38 billion, or 4.2% of its GDP. This increase reflects the strategic shift towards bolstering military capacity in response to regional security concerns.
NATO’S GROWING DEFENSE BUDGETS
NATO members collectively increased their military expenditure by 5.4% to $1.5 trillion, representing 55% of the world’s total military spending. Among the 32 NATO countries, 18 met or exceeded the 2% of GDP defense spending guideline. This is an increase from 11 countries in 2023. The United States is by far the largest contributor. It spent $997 billion. This accounts for 66% of NATO’s total military budget. It also represents 37% of global defense spending. The U.S. continued its focus on modernizing military capabilities, particularly in its nuclear arsenal and cyberwarfare capabilities.
MIDDLE EAST: RISING MILITARY BUDGETS AMID CONFLICT
Military expenditure in the Middle East reached $243 billion in 2024, up 15% from 2023 and 19% higher than in 2015. Israel led the region with a 65% rise in defense spending, reaching $46.5 billion. This increase is largely attributed to its ongoing conflict with Gaza and escalating tensions with Hezbollah in Lebanon. Israel’s military burden grew to 8.8% of its GDP, making it the second highest globally.
Lebanon also saw an unprecedented 58% rise in military spending, reaching $635 million, following years of economic and political turmoil. Conversely, Iran’s military expenditure fell by 10%, primarily due to the ongoing impact of international sanctions. Despite its involvement in regional conflicts, Iran struggled to increase its defense spending due to economic constraints.
ASIA-PACIFIC: A GROWING ARMS RACE
In Asia, China’s military spending reached an estimated $314 billion, a 7% increase from 2023. This marks three decades of uninterrupted growth in defense spending. China continues to modernize its military and also expanding its cyber capabilities. Japan also saw a notable rise, with a 21% increase to $55.3 billion, its largest jump since 1952. Japan’s military expenditure reached 1.4% of its GDP, the highest since 1958, as the nation focused on strengthening its defense capabilities in response to regional security threats.
India, the world’s fifth-largest military spender, raised its defense budget by 1.6%, bringing its total to $86.1 billion. Taiwan’s military expenditure also grew by 1.8%, reflecting ongoing security concerns in the Taiwan Strait.
ADDITIONAL NOTABLE MILITARY SPENDING INCREASES
Several countries outside the major spending regions also significantly increased their military budgets. The United Kingdom saw a 2.8% rise to $81.8 billion, while France’s military expenditure grew by 6.1% to $64.7 billion. Sweden, in its first year as a NATO member, increased defense spending by 34%, reaching 2.0% of its GDP. Saudi Arabia, despite lower oil revenues, raised its military budget by 1.5%, totaling $80.3 billion.
On the other hand, Myanmar saw the highest growth rate in Asia. Military spending increased by a staggering 66%, reaching $5 billion. This occurred amid internal conflicts. In Mexico, military expenditure rose by 39% to $16.7 billion, mainly due to funding for the National Guard and the navy in its ongoing battle against organized crime.
AFRICA’S MILITARY SPENDING GROWTH
Military expenditure in Africa increased by 3% in 2024, totaling $52.1 billion. This growth reflects increasing security concerns in the region. Many countries continue to face internal conflicts as well as external threats.
GLOBAL MILITARY EXPENDITURE TRENDS
The sharp rise in global military spending in 2024 underscores the growing geopolitical tensions and national security concerns worldwide. The surge in defense budgets, especially in Europe, the Middle East, and Asia, points to an increasing arms race. All the nations prioritise military security amidst ongoing conflicts and regional power struggles. As governments continue to allocate substantial resources to defense, the long-term economic and social impacts of these spending increases will likely be felt for years to come. The balancing act between military preparedness and addressing other critical needs, such as healthcare, education, and infrastructure, remains a challenge for many nations.
