In 2023, total global military expenditure surged to $2443 billion, marking a 6.8% real terms increase from 2022. This year-on-year spike, the sharpest since 2009, signifies a significant shift in global defence spending patterns.
The top 10 spenders in 2023, including the United States, China, and Russia, witnessed an uptick in military spending, as per new data released by the Stockholm International Peace Research Institute (SIPRI). This surge in expenditure is emblematic of broader geopolitical trends shaping the global security landscape.
REGIONAL RESURGENCE: MILITARIZATION ACROSS GEOGRAPHICAL DIVIDES
For the ninth consecutive year, world military expenditure soared to an all-time high of $2443 billion. Notably, military spending escalated across all five geographical regions defined by SIPRI, with Europe, Asia and Oceania, and the Middle East experiencing particularly pronounced increases.
ACTIVE RESPONSE TO GLOBAL INSTABILITY: UNDERSTANDING THE DRIVING FORCES
Nan Tian, Senior Researcher at SIPRI’s Military Expenditure and Arms Production Programme, asserts that the unprecedented rise in military spending reflects a direct response to deteriorating peace and security worldwide. States are prioritizing military strength, risking an action–reaction spiral amidst an increasingly volatile geopolitical landscape.
MILITARY AID DYNAMICS: NARROWING THE SPENDING GAP
Russia’s military spending surged by 24% to an estimated $109 billion in 2023, representing a 57% rise since 2014. Conversely, Ukraine, the eighth largest spender in 2023, witnessed a spending surge of 51%, reaching $64.8 billion. Notably, Ukraine’s military aid, including substantial assistance from the USA, narrowed the spending gap with Russia.
NATO DYNAMICS: USA’S DOMINANCE AMIDST EUROPEAN RESURGENCE
In 2023, the 31 NATO members collectively accounted for $1341 billion in military spending, with the USA leading the pack. While most European NATO members increased their military expenditure, the USA maintained its dominant position, representing 68% of total NATO military spending.
SHIFT IN THREAT PERCEPTIONS: EUROPEAN RESPONSE TO EMERGING CHALLENGES
Lorenzo Scarazzato, Researcher at SIPRI’s Military Expenditure and Arms Production Programme, highlights a significant shift in threat perceptions among European NATO states. In response to evolving security challenges, these states are directing growing shares of GDP towards military spending, with the NATO target of 2% increasingly seen as a baseline.
CHINA’S ASCENDANCY: DRIVING REGIONAL MILITARY DYNAMICS
China, the world’s second-largest military spender, allocated an estimated $296 billion to its military in 2023, marking the 29th consecutive year-on-year rise. This surge in Chinese military expenditure has prompted neighbouring countries, including Japan and Taiwan, to bolster their military capabilities in response.
MIDDLE EAST: WAR AND TENSIONS FUEL ESCALATING SPENDING
Military expenditure in the Middle East surged by 9.0% in 2023 to reach $200 billion, the highest annual growth rate in the past decade. Israel and Saudi Arabia, the region’s largest spenders, witnessed substantial increases in military spending amidst escalating tensions and conflicts.
CENTRAL AMERICA AND THE CARIBBEAN: MILITARIZATION IN RESPONSE TO CRIME
Escalating crime levels in Central America and the Caribbean have led to increased military spending in the region. Countries like the Dominican Republic and Mexico have witnessed significant spikes in military expenditure as governments grapple with rising gang violence.
As global military expenditure continues to rise, driven by geopolitical tensions and evolving security threats, understanding the active dynamics shaping these trends is paramount. By analyzing spending patterns, regional dynamics, and geopolitical influences, stakeholders can navigate the complex landscape of global security more effectively.
OTHER NOTABLE DEVELOPMENTS
- India was the fourth largest military spender globally in 2023. At $83.6 billion, its military expenditure was 4.2 per cent higher than in 2022.
- The largest percentage increase in military spending by any country in 2023 was seen in the Democratic Republic of the Congo (+105 per cent), where there has been protracted conflict between the government and non-state armed groups. South Sudan recorded the second largest percentage increase (+78 per cent) amid internal violence and spill over from the Sudanese civil war.
- Poland’s military spending, the 14th highest in the world, was $31.6 billion after growing by 75 per cent between 2022 and 2023—by far the largest annual increase by any European country.
- In 2023 Brazil’s military spending increased by 3.1 per cent to $22.9 billion. Citing the NATO spending guideline, members of Brazil’s Congress submitted a constitutional amendment to the Senate in 2023 that aims to increase Brazil’s military burden to an annual minimum of 2 per cent of GDP (up from 1.1 per cent in 2023).
- Algeria’s military spending grew by 76 per cent to reach $18.3 billion. This was the highest level of expenditure ever recorded by Algeria and was largely due to a sharp rise in revenue from gas exports to countries in Europe as they moved away from Russian supplies.
- Iran was the fourth largest military spender in the Middle East in 2023 with $10.3 billion. According to available data, the share of military spending allocated to the Islamic Revolutionary Guard Corps grew from 27 per cent to 37 per cent between 2019 and 2023.