Conflicts spur 'unprecedented' rise in military spending

Military spending worldwide reached a record $2.7 trillion in 2024, marking the largest increase since the end of the Cold War, driven by ongoing conflicts and growing geopolitical tensions, according to a new report by the Stockholm International Peace Research Institute (SIPRI).

The report highlights significant rises in military expenditure across various regions, particularly in Europe and the Middle East. European countries, in particular, saw "unprecedented" increases, with most nations expanding their defense budgets. Overall, global military spending rose by 9.4 percent from 2023, continuing a trend of annual increases that have persisted for the past decade. SIPRI researcher Xiao Liang called this the highest year-on-year increase since the Cold War's conclusion, noting that while there were larger increases during that period, data for the Soviet Union is unavailable.

More than 100 countries, including all 15 of the largest military spenders, boosted their defense budgets last year, signaling a global shift towards heightened military readiness. Liang attributed this surge to the escalating geopolitical tensions, which are expected to have profound social, economic, and political effects. Many countries, particularly in Europe, have made trade-offs in their budgets, cutting spending in areas such as international aid to fund military expansion. In some cases, governments have relied on loans or tax increases to support rising defense costs.

Europe, including Russia, saw the largest jump in military expenditure, with spending in the region rising by 17 percent to $693 billion. All European nations, except Malta, increased their defense budgets, pushing overall military spending in the region beyond Cold War-era levels. Russia's military expenditure surged by 38 percent to $149 billion, marking a dramatic increase since 2015. Ukraine, facing an ongoing conflict with Russia, increased its defense spending by 2.9 percent to $64.7 billion, which, though a smaller sum compared to Russia’s, represents 34 percent of its GDP, the highest military burden of any country.

Germany's military budget grew by 28 percent to $88.5 billion, making it the fourth-largest spender globally, surpassing India for the first time since reunification. The United States, the world’s largest military spender, raised its defense budget by 5.7 percent to $997 billion, accounting for 37 percent of global military spending. U.S. military expenditure also represents 66 percent of NATO members’ combined defense budgets, with all 32 NATO countries increasing their military outlays in 2024. Notably, 18 NATO countries reached the alliance’s defense spending target of 2 percent of GDP, the highest number since its founding.

The Middle East also saw a significant rise in military spending, which surged by 15 percent to an estimated $243 billion. Israel's military expenditure skyrocketed by 65 percent to $46.5 billion, driven by its ongoing military operations in Gaza. This was the steepest annual increase since the Six-Day War in 1967. In contrast, Iran's military spending decreased by 10 percent to $7.9 billion, reflecting the impact of sanctions that have limited its ability to increase defense spending, despite its involvement in regional conflicts.

China, the second-largest military spender, increased its defense budget by 7 percent to an estimated $314 billion, continuing its trend of steady growth over the past three decades. China’s investment in modernizing its military and expanding its capabilities in cyber warfare and nuclear weapons accounts for half of the total military spending in Asia and Oceania.

The report underscores a significant shift in global defense policies, with countries increasingly prioritizing military spending amid growing security concerns. While the increase in defense budgets reflects the intensity of ongoing conflicts, it also raises concerns about the long-term economic and political consequences of such large-scale military investments.

This article was reported by journalist Angelia.