Global military spending sees highest increase since the Cold War

In 2024, global military spending reached $2.718 trillion, marking the 10th consecutive year of increases and registering the largest increase since the end of the Cold War, according to the recent report by the Stockholm International Peace Research Institute (SIPRI).

This growth, which raised global military spending to 2.5% of world gross domestic product (GDP), reflects a growing prioritization of military security in more than 100 countries, which could generate significant long-term economic and social consequences, according to the study.

Europe leads global increase

Military spending in Europe, including Russia, grew by 17% to $693 billion, being the main driver of the global increase. The war in Ukraine, in its third year, drove a widespread increase on the continent, surpassing late Cold War levels of military spending. All European countries except Malta increased their military budgets.

Russia allocated $149 billion to its military spending, 38% more than in 2023 and twice as much as in 2015, representing 7.1% of its GDP. Ukraine spent $64.7 billion, equivalent to 34% of its GDP, the largest proportion of military spending in the world.

In Central and Western Europe, countries such as Germany and Poland also recorded historic increases.

Germany increased its military spending by 28% to $88.5 billion, making it the biggest spender in Western Europe, boosted by a special 100 billion euro (roughly $113.5 billion) defense fund announced in 2022. Poland, meanwhile, increased its spending by 31% to $38 billion, equivalent to 4.2% of its GDP.

NATO also significantly increasing military spending

All members of the North Atlantic Treaty Organization (NATO) increased their military spending in 2024, totaling $1.506 trillion, 55% of global military spending. Eighteen of the 32 members spent at least 2% of their GDP on defense, the highest number since NATO set this goal in 2014.

The United States, with spending of $997 billion (37% of the global total), allocated a significant share to modernizing its nuclear arsenal and military capabilities to maintain its strategic advantage over Russia and China.

Middle East: Notable increases in Israel and Lebanon

In the Middle East, military spending reached $243 billion, 15% more than in 2023. Israel recorded the largest annual increase since 1967, with spending of $46.5 billion (65% more than in 2023), equivalent to 8.8% of its GDP, due to the war in Gaza following the Oct. 7 massacre and the conflict with Hezbollah in Lebanon.

Lebanon, for its part, increased its spending by 58% to $635 million.

In contrast, Iran reduced its military spending by 10% to $7.9 billion, constrained by economic sanctions.

Asia-Pacific: China and its neighbors beef up their arsenals

China, the world's second largest military spender, increased its budget by 7% to $314 billion, continuing three decades of growth. This spending accounted for 50% of the total in Asia and Oceania, with investments in military modernization, cybersecurity and nuclear arsenal.

Japan increased its spending by 21% to $55.3 billion, the largest increase since 1952, while India allocated $86.1 billion, consolidating its position as the world's fifth largest spender.

Other global developments

In other regions, highlights include increases such as Saudi Arabia, which with $80.3 billion was the biggest spender in the Middle East, and Myanmar, whose spending grew 66% to $5 billion due to internal conflicts.

Mexico, meanwhile, increased its spending by 39% to $16.7 billion, mainly to fund its National Guard and Navy in the fight against organized crime.

Future implications

The continued rise in global military spending, driven by geopolitical tensions and regional conflicts, raises questions about the social and economic costs of prioritizing military security, the report notes.

Xiao Liang, a researcher at SIPRI, said, "Over 100 countries around the world raised their military spending in 2024." He added: "As governments increasingly prioritize military security, often at the expense of other budget areas, the economic and social trade-offs could have significant effects on societies for years to come."