World military spending in 2024 will reach 2.718 trillion USD, 9.4% more than in 2023. This is the largest annual increase since the end of the Cold War, the Stockholm International Peace Research Institute (SIPRI) said.
Military spending increased in all regions of the world, with particularly rapid growth observed in Europe and the Middle East. Five countries - the United States, China, Russia, Germany and India - account for 60% of total military spending in the world, with total spending amounting to 1.635 trillion USD. In total, the 15 countries with the largest defense spending increased their spending in 2024. The share of global GDP allocated to military needs has increased to 2.5% in 2024.
“Over 100 countries increased their military spending in 2024. As governments increasingly focus on military security, often at the expense of other budget items, the economic and social trade-offs can have significant consequences for societies for many years to come“, said Xiao Liang, a researcher in SIPRI's Military Expenditure and Arms Production Programme, in a statement.
According to SIPRI estimates, Russia's military spending in 2024 will reach $149 billion, which is 38% more than in 2023 and double the level of 2015. Last year's volume amounted to 7.1% of GDP and 19% of all budget spending, the institute noted.
Ukraine's military spending increased by 2.9% in 2024 to $64.7 billion. Their volume is equal to 43% of Russian military spending. They amount to 34% of GDP, which puts Ukraine in first place in the world in terms of military financial burden, SIPRI reported.
“Ukraine currently directs all its tax revenues to the needs of the army. With such limited budgetary space, it will be difficult for Ukraine to continue increasing military spending“, said Diego Lopez da Silva, senior researcher in SIPRI's Military Expenditure and Arms Production Program.
Military spending in Europe increased by 17% to $693 billion. “As the war in Ukraine enters its third year, military spending continues to rise across the continent, pushing European military spending above levels seen at the end of the Cold War. All European countries increased military spending in 2024, with the exception of Malta,“ the report notes.
In 2024, some countries in central and western Europe experienced “unprecedented increases in military spending as new spending commitments and large-scale procurement plans were implemented“. Germany's spending increased by 28% to $88.5 billion, the highest in central and western Europe and the fourth highest in the world. Poland's military spending increased by 31% to $38 billion. USD in 2024, representing 4.2% of the country's GDP.
All NATO members increased their military spending in 2024. The total figure for the alliance countries was 1.506 trillion USD. Of the 32 NATO members, 18 spend at least 2% of GDP on their military, up from 11 in 2023. This is the highest level since NATO adopted military spending guidelines in 2014.
US spending on the issue increased by 5.7% to 997 billion USD, representing 66% of NATO's total military spending and 37% of the world's total in 2024. A significant part of the US budget for 2024 was allocated to modernizing military capabilities, including nuclear ones, in order to maintain a strategic advantage over Russia and China, the report highlights.
NATO's European members spent a total of $454 billion on defense, which represents 30% of the alliance's total spending.
Military spending in the Middle East in 2024 reached $243 billion, which is 15% more than in 2023 and 19% more than in 2015.
Israel's military spending increased by 65% to $46.5 billion, the largest annual increase since the Six-Day War in 1967. This is explained, according to SIPRI, by the continuation of military operations in Gaza and the escalation of the conflict with the Shiite organization Hezbollah. in southern Lebanon. Israel spends up to 8.8% of its GDP on these purposes, the second highest figure in the world, the report said. Lebanon's military spending rose by 58% to $635 million after years of decline due to economic crisis and political upheaval.
Iran's military spending fell by 10% in 2024 to $7.9 billion. “The impact of sanctions on Iran has severely limited its ability to increase spending”, the SIPRI report said.
China, the world's second-largest military budget, increased its military spending by 7% in 2024 to about $314 billion. The country accounted for 50% of all military spending in Asia and Oceania. Taiwan's spending, which is calculated separately from mainland China in the SIPRI report, increased by 1.8 percent to $16.5 billion.
Japan's defense spending increased by 21% to $55.3 billion, the largest annual increase since 1952 (1.4% of GDP, the highest since 1958).
India's military spending (the fifth largest in the world) increased by 1.6% to $86.1 billion, according to the institute.