Global military expenditure hits record $2.9 trillion as defence budgets surge amid rising insecurity

Global military spending has climbed to a record high of nearly $2.9 trillion in 2025, marking the 11th consecutive year of growth according to a new report by the Stockholm International Peace Research Institute. The data indicates that rising insecurity and a global trend toward rearmament have significantly boosted defence budgets across the world.

The Stockholm International Peace Research Institute (SIPRI) notes that the United States, China, and Russia collectively accounted for $1.48 trillion of the total, comprising just over half of global expenditure. Despite this concentration, the global military burden, defined as the share of worldwide GDP devoted to military spending, has reached its highest level since 2009.

The United States, the world's largest spender, saw its defence budget fall by 7.5 per cent to $954 billion. This reduction was largely attributed to the absence of new financial military aid to Ukraine, following a pledge of $127 billion over the previous three years. However, researcher Lorenzo Scarazzato stated that this decrease was more than offset by significant increases in Europe and Asia.

Europe emerged as the primary driver of the global rise, with spending surging 14 per cent to $864 billion. This increase was fuelled by the ongoing war in Ukraine and a strategic shift where the United States is pushing European nations to take greater responsibility for their own defence. Germany raised its expenditure by 24 per cent to $114 billion, while Spain recorded a 50 per cent jump to $40.2 billion.

In Asia and Oceania, spending reached $681 billion, representing an 8.5 per cent increase from 2025, the region's largest annual rise since 2009. China spent an estimated $336 billion, maintaining a trajectory of increasing expenditure for three decades. Meanwhile, Japan and Taiwan increased their budgets by 9.7 per cent and 14 per cent respectively, reacting to heightened threat perceptions in the region.

Scarazzato explained that the global landscape feels increasingly insecure, with nations spending on their militaries to compensate for the environment. While the Middle East saw only a marginal rise of 0.1 per cent to $218 billion due to a ceasefire in Gaza, the broader trend points to a world prioritising military capability over peacetime economic allocation.