Global military spending in 2025 reached $2,887 billion, a 2.9% increase from 2024, according to the Stockholm International Peace Research Institute (SIPRI). US military spending decreased by 7.5% to $954 billion, while European spending surged 14% to $864 billion.
Russia's spending rose 5.9% to $190 billion, representing 7.5% of its GDP, while Ukraine's budget jumped 20% to $84.1 billion, a staggering 40% of its GDP, according to SIPRI. SIPRI researcher Lorenzo Scarazzato noted that military spending as a share of government expenditure reached record levels in both countries in 2025 and is likely to keep climbing in 2026.
Countries reacted to another year of war, uncertainty and geopolitical upheaval.
The 29 European NATO members collectively spent $559 billion in 2025, accounting for the bulk of Europe's total, SIPRI reported. Germany led the pack with a 24% increase, while Spain boosted its budget by 50%, hitting the NATO target of 2% of GDP for the first time since 1994.
The U.S. decline of 7.5% was attributed to the conclusion of the Ukraine aid program, which saw $127 billion approved over the previous three years, according to SIPRI. However, the institute stressed that the drop is temporary, as Congress has already greenlit more than $1 trillion for the current fiscal year.
The United States, China, and Russia together accounted for more than half of global military spending, SIPRI noted. "Countries reacted to another year of war, uncertainty and geopolitical upheaval," said SIPRI researcher Xiao Liang.