Global Military Spending Sees Unprecedented Surge

In 2024, global military expenditures reached a staggering $2.718 trillion, marking the tenth consecutive year of increases. A report released by the Stockholm International Peace Research Institute (SIPRI) indicates that this figure represents a 9.4% rise compared to 2023, the most significant annual increase observed since at least the end of the Cold War.

Military budgets have escalated across all regions, with Europe and the Middle East experiencing the sharpest increases. In Europe, including Russia, defense spending surged by 17% to $693 billion. All countries on the continent, except for Malta, recorded increases in their military budgets during 2024. Noteworthy hikes were reported in Germany (28%), Poland (31%), Sweden (34%), and Russia (38%). Meanwhile, Ukraine's military spending rose by approximately 3% to reach $64.7 billion, equating to 43% of Russia's expenditures.

SIPRI expert Jade Guiberteau Ricard attributed the rapid spending growth among European NATO members primarily to ongoing threats from Russia and concerns regarding a potential withdrawal of U.S. support from the alliance.

Of the 32 NATO member states, 18 allocated at least 2% of their Gross Domestic Product (GDP) towards defense. However, European allies contributed less than one-third (30%) of NATO's total military budget, with the United States accounting for a substantial $997 billion, or 66% of the overall spending. Following the U.S. were China, Russia, Germany, and India, collectively responsible for 60% of global defense expenditures. The share of military spending relative to the global GDP increased to 2.5% in 2024.

In the Middle East, military spending also saw significant rises due to ongoing conflicts, particularly between Israel and Hamas in Gaza, as well as with Hezbollah in Lebanon. Israel's military budget soared by 65% compared to 2023, totaling $46.5 billion, the highest annual increase since the Six-Day War of 1967. Lebanon experienced a similar surge of 58% in military spending. Conversely, Iran's military expenditures fell by 10%, despite its involvement in various proxy conflicts across the region. SIPRI expert Zubaida Karim noted that, contrary to widespread expectations, the rise in military spending in the Middle East was largely limited to Israel and Lebanon.

In Asia and Oceania, military expenditures were predominantly driven by China, which accounted for half (approximately $314 billion) of all military spending in the region. China's investment is focused on expanding its nuclear arsenal and advancing cyber warfare capabilities. Other countries, including Japan (21%), India (1.6%), and Taiwan (1.8%), also increased their military budgets. Given the unresolved disputes and rising tensions, these investments raise concerns about a potential arms race in the region. China's territorial claims in the South China Sea and its threats towards Taiwan, which it views as a breakaway province since the split in 1949, further exacerbate these concerns.