In a recent annual report by the Stockholm International Peace Research Institute (SIPRI), the global military expenditure for the year 2024 reached an unprecedented height of $2.72 trillion. It is a sharp increase from the previous year, reporting a 9.4% increase in the overall expenditure on military by the global governments, the biggest since the Cold War. The report also shows a decade-long trend of escalating defense budgets around the globe, underlining the escalating geopolitical tension and ongoing conflicts across multiple regions.
In the comprehensive analysis done by SIPRI, which covers over 100 nations, it is indicated that the defense spending in the year 2024 took away money from other critical sectors, thus buffing the global military expenditure by 2.5% of the global gross domestic product (GDP), with a per capita spending of $334.
“Over 100 countries around the world raised their military spending in 2024,” – Xiao Liang, Researcher, SIPRI (Military Expenditure and Arms Production Programme)
The United States Dominates The Global Military Expenditure
The United States has maintained its lead in global military expenditure, allocating $997 billion in 2024, amounting to 37% of the global total. The amount is also 66% of the money spent collectively by NATO member countries, who spent $1.51 trillion.
The US was followed by China, which spent an estimated $314 billion, Russia with $149 billion, Germany with $88.5 billion, and India, coming out as the fifth-highest spender with $86.1 billion. Together, these nations accounted for 60% of worldwide military spending, which was 5% more than NATO’s share in the global military expenditure.
Interestingly, 18 out of NATO’s 32 member countries met or exceeded the target of allocating 2% of their GDP to defense, which is 7 more than the previous year.
Significant Increases Noted In European and Middle Eastern Defense Budgets
Europe, as a whole, has increased its military spending by almost 17%, reaching up to $693 billion. It was Germany that led it, a 28% year-over-year increase to $88.5 billion, marking 2024 its highest defense budget allocation since reunification. Poland also saw a positive shift in military spending, raising it by 31%.
The European spending spree was clearly mirrored in the Middle Eastern countries, with nations such as Israel raising 65% more than what they did previously, reaching a military expenditure of $46.5 billion, which is almost 9% of its total GDP. It was also noted that this can be an effect of the ongoing conflict between Hezbollah.
“With several unresolved disputes and mounting tensions, these investments risk sending the region into a dangerous arms-race spiral,” – Nan Tian, Director, SIPRI (Military Expenditure and Arms Production Programme)
Asia Witnesses Continued Growth In Military Expenditure
China continued its upward trajectory in defense spending for the 30th consecutive year, allocating an estimated $314 billion in 2024. It is a 6% increase from the previous year, and 59% higher than it was a decade ago. This growth most likely reflects China’s strategic focus on enhancing the capabilities of the People’s Liberation Army amid regional tensions, particularly concerning Taiwan.
Japan’s defense budget also experienced a significant 21% increase, totaling $55.3 billion in 2024. This marks Japan’s most substantial rise in military expenditure since 1952, indicating a shift in its post-war defense posture in response to evolving security challenges in the Asia-Pacific region.
Ukraine and Russia Also Increase Military Expenditures, Reflecting The Ongoing Conflict
Ukraine’s military spending reached $64.7 billion in 2024 which is almost 34% of its GDP, underlining the highest military burden globally. This substantial increase foretells Ukraine’s commitment to boosting its defense capabilities amid the ongoing conflict following Russia’s full-scale invasion in 2022.
Similarly, Russia also expanded its defense budget by 38% to an estimated $149 billion, allocating 7.1% of its GDP and 19% of total government spending to its military efforts, particularly in and against Ukraine. This is also a reflection of Russia’s strategic priorities in the region.
“Ukraine currently allocates all of its tax revenues to its military; in such a constrained fiscal environment, it will be difficult for Ukraine to continue to raise its military expenditures.” – Diego Lopes da Silva, Senior Researcher, SIPRI (Military Expenditure and Arms Production Programme)
Implications and Future Outlook
If we take the report as an indicator, along with the rising geopolitical tensions globally, it paints a dire picture. The steady and sustained increase in global military spending also raises a critical question regarding sustainable fiscal responsibilities and allocation of funds from social and developmental priorities. However, it will continue to remain a pivotal consideration for countries around the globe, as they spend trillions on military as they navigate the complex security landscape.
