SIPRI Report Reveals Record-Breaking Global Military Spending

Global military spending reached a new peak in 2024, totaling just over $2.7 trillion (€2.38 trillion). That was 9.4% more than in 2023. Military spending has been rising steadily worldwide over the past ten years. But 2024 saw the most rapid rise within a single year since the end of the Cold War.

More than 100 nations increased their defense spending from the prior year, as indicated in the newest SIPRI report. This rise was particularly notable in Europe and the Middle East—largely due to the conflicts in Ukraine and the Gaza Strip.

Germany is currently ranked fourth.

In 2024, Germany increased its military expenditure for the consecutive three years, marking another significant contribution to European affairs. As reported by SIPRI, this rise amounted to $88.5 billion, which is an increase of 28% from the prior year’s spendings.

This positions Germany as the fourth country with the largest military expenditure, coming after the US, China, and Russia. In 2023, however, Germany ranked seventh in such spendings.

Lorenzo Scarazzato, a researcher from the SIPRI Military Expenditure and Arms Production Program, stated that "For the first time since unification, Germany has become the largest military spender in Western Europe." This change can be attributed to the €100 billion ($114 billion) dedicated special fund for the Bundeswehr introduced in 2022.

As noted by SIPRI, this trend shows no signs of stopping: "Recent policies implemented in Germany along with those in numerous other European nations indicate that Europe is entering an era characterized by substantial and escalating defense expenditures, which are expected to persist into the near term."

Increased military spending throughout Europe

In 2024, many other European nations significantly increased their military expenditures as well: Poland raised its spending by 31%, bringing its investment up to 4.2% of GDP for defense purposes. This places them at the top among all European NATO allies in terms of defense expenditure relative to economic output. Additionally, Sweden augmented its military funding by 34% compared to the preceding year—the period following its accession into NATO—allocating approximately $12 billion towards its armed forces.

The increase in defense expenditure across Europe can largely be attributed to the conflict in Ukraine, which is entering its third year. Besides ramping up funding for EU defense initiatives, significant amounts have also been allocated towards military support for Ukraine, totaling approximately $60 billion. Although the majority of this amount originated from the U.S., European nations also made substantial contributions. For instance, Germany single-handedly supplied around $7.7 billion.

In 2024, Ukraine bore the heaviest military load globally; its defense expenditures constituted 34% of its GDP. By contrast, Germany’s expenditure stood at barely 2%. According to the SIPRI report, “Ukraine’s entire tax revenue for 2024 went entirely towards funding its military expenses, whereas all non-military socioeconomic outlays were supported through international assistance.”

America allocates the largest budget to its armed forces.

The US remains the world's top spender on its military, and it spent even more in 2024: it invested $997 billion in its armed forces. "A significant portion of the US budget for 2024 was dedicated to modernizing military capabilities and the US nuclear arsenal in order to maintain a strategic advantage over Russia and China," states the SIPRI analysis. The US possesses more than 5,000 nuclear warheads and is heavily investing in modernizing its arsenal.

By 2035, China maintained its trajectory toward comprehensive military enhancement with an anticipated defense spending of around $314 billion in 2024. As reported by SIPRI, this advancement encompasses new stealth fighter jets, drones, and undersea autonomous vessels. Additionally, China significantly bolstered its stockpile of nuclear weapons throughout 2024.

Risk of an arms race in Asia

Other nations across Asia are likewise bolstering their defense capacities. For instance, Japan ramped up its military expenditure by 21%, reaching $55.3 billion in 2024. According to Nan Tian from SIPRI, key military investors within the Asia-Pacific area are enhancing their focus on sophisticated military technologies. Considering ongoing conflicts and escalating hostilities, these financial commitments have the potential to ignite an alarming escalation towards an arms race in the region.

Sharp increase in Israel

In the Middle East, Israel stands out. It raised its military spending by 65%, to $46.5 billion in 2024. That was due to the escalation of Hezbollah conflict and the continuing war in Gaza. Against this backdrop, Lebanon also significantly raised its spending on defense. It had not been done so in previous years, due to the country's political and economic instability.

This article was originally written in German.