New record set in global military spending

Global military spending in 2024, totals just over $2.7 trillion (€2.38 trillion). That was 9.4% more than in 2023. Military spending has been rising steadily worldwide over the past ten years. But 2024 saw the most rapid rise within a single year since the end of the Cold War.

Over 100 countries spent more on their military than in the previous year, according to the latest report by the Stockholm International Peace Research Institute (SIPRI). The increase was especially considerable in Europe and the Middle East — a direct result of the wars in Ukraine and the Gaza Strip.

Germany is now in fourth place

Germany has contributed significantly to developments in Europe: in 2024, it raised its military spending for the third year running. According to SIPRI, it spent $88.5 billion, 28% higher than the previous year.

That puts Germany in fourth place among countries with the highest military spending — following the US, China, and Russia. In 2023, Germany was in seventh place.

“For the first time since reunification Germany became the biggest military spender in Western Europe,” said Lorenzo Scarazzato, Researcher with the SIPRI Military Expenditure and Arms Production Programme. That was due to the €100 billion ($114 billion) special fund for the Bundeswehr announced in 2022.

And according to SIPRI, that’s not the end of the story

“The latest policies adopted in Germany and many other European countries suggest that Europe has entered a period of high and increasing military spending that is likely to continue for the foreseeable future.”

Higher defence budgets across Europe

Many other European countries also boosted their military spending considerably in 2024: Poland spent 31% more than the previous year; it now invests 4.2% of its gross domestic product (GDP) on defence. That is the highest percentage of all European NATO members. Sweden spent 34% more than in 2023 — the year it joined NATO — investing $12 billion in its military.

Defence spending in Europe was primarily driven up by the war in Ukraine, now in its third year. In addition to boosting spending on EU defence, a lot of money has also been spent on military aid for Ukraine: a total of $60 billion. While the biggest share came from the US, European countries contributed as well. Germany alone provided $7.7 billion.

Ukraine had the highest military burden in the world, by far: its military spending amounted to 34% of GDP in 2024. In comparison, Germany’s was just under 2%. The SIPRI report states that “All Ukraine’s tax revenues were fully absorbed by its military spending in 2024, while all non-military socio-economic spending was funded by foreign aid.”

The US invests the most in its military

The US remains the world’s top spender on its military, and it spent even more in 2024: it invested $997 billion in its armed forces. “A significant portion of the US budget for 2024 was dedicated to modernizing military capabilities and the US nuclear arsenal in order to maintain a strategic advantage over Russia and China,” states the SIPRI analysis. The US possesses more than 5,000 nuclear warheads and is heavily investing in modernizing its arsenal.

China continued its course of military modernization in all areas by 2035: its budget was estimated to be $314 billion in 2024. According to SIPRI, the improved military capabilities include “new stealth combat aircraft, unmanned aerial vehicles (UAVs), and unmanned underwater vehicles.” Furthermore, China rapidly expanded its nuclear arsenal in 2024.

Danger of an arms race in Asia

Other Asian countries are also rearming. Japan, for example, increased its military spending by 21% to $55.3 billion in 2024. “Major military spenders in the Asia-Pacific region are increasing resources into advanced military capabilities,” emphasized SIPRI’s Nan Tian. Given the unresolved disputes and mounting tensions, “These investments risk sending the region into a dangerous arms-race spiral.”

Sharp increase in Israel

In the Middle East, Israel stands out. It raised its military spending by 65%, to $46.5 billion in 2024. That was due to the escalation of the Hezbollah conflict and the continuing war in Gaza. Against this backdrop, Lebanon also significantly raised its spending on defence. It had not been done so in previous years, due to the country’s political and economic instability.