Global military spending reached $2.72 trillion in 2024. This is an increase of 9.4 percent compared to 2023 and is the largest jump at least since the end of the Cold War, according to a report published today by a leading think tank, Reuters reported.
Increased geopolitical tensions have led to an increase in defense spending in all regions of the world. The increase was particularly large in Europe and the Middle East, according to data from the Stockholm International Peace Research Institute (SIPRI).
"More than 100 countries around the world increased their military spending in 2024," SIPRI said. "As governments increasingly prioritize military security, often at the expense of other budget areas, the economic and social trade-offs could have significant consequences for societies in the years ahead," the organization added.
The war in Ukraine and doubts about the US commitment to NATO led to a 17 percent increase in military spending in Europe (including Russia). This took defense spending on the continent beyond levels recorded at the end of the Cold War.
Russia spent $149 billion on the purpose in 2024, 38 percent more than in 2024. and double that of 2015. This represents 7.1 percent of GDP and 19 percent of the country's total government spending.
Ukraine's total military spending rose by 2.9 percent to $64.7 billion. That's 43 percent of Russia's spending and 34 percent of Ukraine's GDP, making it the country with the largest share of its money spent on defense in 2024.
"Ukraine currently allocates all of its tax revenues to its military," SIPRI said. "With such a small financial buffer, it will be difficult for Ukraine to continue increasing its military spending," the organization added.
US military spending increased by 5.7 percent to $997 billion, which is 66 percent of all NATO spending and 37 percent of global military spending in 2024.
"This really shows the strong geopolitical tensions," said Xiao Liang, a researcher in the "Military Expenditure and Arms Production" program at the SIPRI, AFP reported.
More than 100 countries increased their defense budgets last year, the report highlights.
The solid bill will have "profound socio-economic and political impact", Liang noted, as "countries have to make compromises in their budget decisions".
"We see many European countries reducing other budget items such as international aid to finance rising military spending, [...] or considering raising taxes and borrowing", he listed.
Several European countries stand out. Germany's military spending, for example, jumped 28 percent to $88.5 billion, displacing India from fourth place in the world. "For the first time since its unification, Germany has become the main contributor to defense in Central and Western Europe," said Xiao Liang.
And the 32 NATO members, which have begun a process of rearmament in the face of the prospect of a possible American withdrawal, are also significantly increasing these expenditures, AFP reports.
"In 2024, 18 of the 32 countries will achieve the target of 2 percent of GDP for military spending" - something unprecedented since the creation of NATO, the researcher specifies. "Large-scale arms procurement projects are expected in the coming years," he adds.
The same trend is observed in the Middle East.
Israel continued its war in the Gaza Strip in 2024 its military spending jumped by 65 percent to $46.5 billion - the largest increase since the Six-Day War in 1967, SIPRI said.
In contrast, Iran's spending is set to fall by 10 percent to $7.9 billion in 2024, "despite its involvement in regional conflicts," SIPRI said, as "sanctions severely limit its ability to increase spending."
China is the second-largest spender after the United States, investing in modernizing its armed forces, expanding its cyberwarfare capabilities and developing its nuclear arsenal. The country now accounts for half of military spending in Asia and Oceania. In 2024, China increased its military budget by 7 percent, reaching $314 billion.