Global military spending surged to its highest level in over a decade, driven by increasing defense budgets across Europe and Asia according to a new report by Stockholm International Peace Research Institute.
The report estimates that worldwide military expenditure reached nearly $2.9 trillion in 2025 marking a 2.9% increase year-on-year and accounting for 2.5% of global GDP the highest level since 2009.
Defense spending in Europe saw a sharp 14% increase reaching $864 billion, while Asia and Oceania recorded an 8.1% rise to $681 billion reflecting growing geopolitical tensions and security concerns.
The world’s top military spenders included United States, China, Russia, Germany and India, which together accounted for 58% of global defense expenditure.
The United States remained the largest spender, allocating $954 billion, followed by China at $336 billion and Russia at $190 billion.
Among US allies, defense budgets rose significantly, particularly within NATO, as countries pushed for greater military self-reliance and burden sharing. Nations such as Belgium, Spain, Norway, Denmark, Germany, Poland and Canada recorded notable increases.
In Asia, countries including Japan, Australia and the Philippines also expanded military spending amid regional tensions and uncertainty over long-term security commitments.
Meanwhile, Taiwan reported one of its largest increases in decades highlighting growing concerns over regional stability.
In conflict zones, Ukraine allocated an estimated 40% of its GDP to defense making it the highest globally, while Russia also significantly increased its military expenditure.
In the Middle East, Saudi Arabia remained the largest spender, followed by Israel, while Iran saw a reported decline in official spending, though analysts suggest actual figures may be higher.
In South Asia, India increased defense spending significantly widening the gap with Pakistan.
Experts warn that rising global conflicts, geopolitical rivalries and long-term military strategies are likely to push defense spending even higher in the coming years.
Keywords:
global military spending 2025, SIPRI report, defense budgets Europe Asia, US China military spending, NATO defense increase, global security trends, Ukraine war spending, military expenditure GDP, Asian Burg World Desk
Asian Burg | World Desk
Send your feedback via email info@asianburg.com
