Military spending around the world surged to an all-time high of $2.718 trillion in 2024, according to a new report from the Stockholm International Peace Research Institute (SIPRI). This marks the tenth straight year of rising defense budgets and represents the largest year-over-year increase since the end of the Cold War. The report highlights growing concerns about global stability as nations pour more resources into their armed forces.
Xiao Liang, a researcher at SIPRI, warned that “over 100 countries around the world raised their military spending in 2024.” He added, “As governments increasingly prioritize military security, often at the expense of other budget areas, the economic and social trade-offs could have significant effects on societies for years to come.”
The United States Still Spends the Most by Far
The United States remains the largest military spender in the world. In 2024, the U.S. spent $997 billion, which is a 5.7 percent increase from the previous year. This accounts for 37 percent of global military expenditures and 66 percent of total NATO spending.
According to SIPRI, “a significant portion of the U.S. budget for 2024 was dedicated to modernizing military capabilities and the U.S. nuclear arsenal in order to maintain a strategic advantage over Russia and China.” The push for modernization is seen as a response to growing threats from adversaries and rising instability in many regions.
At the World Economic Forum in January, President Donald Trump said NATO countries must increase their defense spending to 5 percent of GDP. “It was only at 2 percent, and most nations didn’t pay until I came along, I insisted that they pay, and they did,” Trump stated. NATO Secretary General Mark Rutte agreed with the proposal, saying that Trump was right to push for higher contributions.
Europe Enters a New Era of Military Buildup
Europe was the largest driver of the increase in global military spending. Military budgets across the continent, including Russia, rose by 17 percent to $693 billion in 2024. This brought European defense spending above the level seen at the end of the Cold War.
Russia’s military budget surged 38 percent to $149 billion. According to SIPRI, that is nearly double what Russia spent in 2015. Military spending now makes up 7.1 percent of Russia’s GDP and 19 percent of all government spending. Ukraine also raised its defense budget to $64.7 billion, equal to 34 percent of its GDP. SIPRI noted that Ukraine now allocates almost all of its tax revenue to military purposes.
“Russia once again significantly increased its military spending, widening the spending gap with Ukraine,” said Diego Lopes da Silva, a senior SIPRI researcher. He added, “In such a tight fiscal space, it will be challenging for Ukraine to keep increasing its military spending.”
Germany’s defense budget rose by 28 percent to $88.5 billion, making it the fourth-largest military spender in the world and the largest in Western Europe. This increase was linked to a special €100 billion defense fund announced in 2022. SIPRI’s Lorenzo Scarazzato explained, “The latest policies adopted in Germany and many other European countries suggest that Europe has entered a period of high and increasing military spending that is likely to continue for the foreseeable future.”
Poland’s military spending increased by 31 percent to $38 billion, or 4.2 percent of its GDP. Sweden, now a NATO member, raised its defense spending by 34 percent to $12 billion.
China’s Real Spending May Be Much Higher Than It Admits
China officially reported a military budget of $314 billion for 2024, an increase of 7 percent from the previous year. This makes it the second-largest military spender in the world. According to SIPRI, “China accounted for 50 percent of all military spending in Asia and Oceania, investing in the continued modernization of its military and expansion of its cyberwarfare capabilities and nuclear arsenal.”
However, analysts in the United States believe China’s actual defense spending is much higher. Senator Dan Sullivan stated, “China spends about $700 billion annually,” compared to the officially reported figure that is less than $300 billion. His statement echoes findings by U.S. intelligence and SIPRI researchers who argue that China’s defense budget is not transparent.
Antonio Graceffo, a China economy analyst writing in The Epoch Times, explained that labor costs in China are much lower than in the U.S. “The average salary in China is about $1,000 per month, while it is closer to $7,000 in the United States. This means that for the same expenditure, China can hire seven workers for every one U.S. worker,” he wrote. Graceffo concluded that “when adjusted for PPP, China’s defense budget appears roughly equivalent to that of the United States.”
Yet he also pointed out that China faces certain disadvantages. “Imported technology, parts, and raw materials must be paid for in dollars, which would make these items significantly more expensive for China than the United States.”
China’s 2025 draft budget plans to raise defense spending by another 7.2 percent, once again outpacing its 5 percent projected economic growth.
Military Budgets Rise Across Asia and the Middle East
China’s neighbors are also increasing their defense budgets. Japan raised its military spending by 21 percent, the largest increase since 1952. Taiwan and India both raised their military budgets modestly. SIPRI director Nan Tian warned, “With several unresolved disputes and mounting tensions, these investments risk sending the region into a dangerous arms-race spiral.”
In the Middle East, defense spending grew by 15 percent to reach $243 billion. Israel’s military budget surged 65 percent to $46.5 billion, the largest annual increase since the Six-Day War. Lebanon’s budget rose 58 percent, although total spending remains low. Iran, however, saw a 10 percent drop in military spending due to sanctions and economic pressure.
Zubaida Karim of SIPRI noted, “Despite widespread expectations that many Middle Eastern countries would increase their military spending in 2024, major rises were limited to Israel and Lebanon.”
Global Stability at Risk
Military spending is rising faster than ever, and nations across the globe are preparing for future conflicts. SIPRI reported that in 2024, 18 out of 32 NATO members met the alliance’s target of spending at least 2 percent of GDP on defense, up from 11 countries the previous year.
Jade Guiberteau Ricard, another SIPRI researcher, cautioned, “Boosting spending alone will not necessarily translate into significantly greater military capability or independence from the USA. Those are far more complex tasks.”
SIPRI’s report paints a clear picture of a world that is becoming more ready for war. The growing emphasis on defense, at the expense of social and economic programs, may have serious long-term consequences. With tensions rising and transparency lacking, particularly in authoritarian countries like China and Russia, the record-breaking increase in military spending points to a global order that is growing more unstable.
