GBAF Logo
Global Banking & Finance Awards® 2026 Nominations open, free to enter Nominate now →
Five NATO members seen to spend over 3.5% of GDP on core defence this year, alliance estimates show - Headlines news and analysis from Global Banking & Finance Review
Headlines

Five NATO members seen to spend over 3.5% of GDP on core defence this year, alliance estimates show

Published by Global Banking & Finance Review

Posted on July 7, 2026

2 min read

· Last updated: July 7, 2026

Add as preferred source on Google

Five NATO Members Set to Surpass 3.5% GDP Defence Spending Target by 2026

NATO Defence Spending Projections and Member Performance

Overview of NATO Defence Spending Goals

ANKARA, July 7 (Reuters) - Five NATO members are projected to meet the alliance's goal of spending 3.5% of gross domestic product on core defence already in 2026, according to updated NATO data published on Tuesday ahead of a leaders' summit in Ankara, which also showed some members are still expected to spend only about 2%.

At a summit in The Hague last year, NATO leaders pledged to spend 3.5% of GDP on core defence items such as weapons and troops by 2035 - up from a previous goal of 2%.

They also agreed to invest a further 1.5% of GDP on broader defence-related investments such as boosting cybersecurity.

Alliance members have faced pressure from U.S. President Donald Trump to demonstrate they are stepping up on defence spending.

Top Defence Spenders Among NATO Members

Leading Countries by Defence Expenditure

Data released on Tuesday put Lithuania as the alliance's top spender as a percentage of economic output, with core defence expenditure estimated at 5.33% of GDP this year.

It was followed by Estonia (5.1%), Latvia (4.92%), Poland (4.68%) and Greece (3.65%).

Countries Below or Near the Target

Members Not Meeting Previous Targets

The report showed that last year, three NATO members – Albania (1.48%), Slovenia (1.57%), and the Czech Republic (1.86%) did not meet the previous target of 2%.

Projected Improvements and Notable Mentions

It also showed that Albania and the Czech Republic are expected to spend over 2% this year, with a note included stating that Slovenia's new government plans to spend more than 2%.

Some others are estimated to be at or slightly above 2%, including Belgium (2%), Portugal (2.1%), and Italy (2.1%).

Major NATO Members' Defence Spending

United States and Key European Allies

The United States is estimated to be spending 3.17%, while Germany is at 2.69%, United Kingdon at 2.56% and France at 2.22%, according to the projections.

Overall Alliance Spending

In total, European NATO members and Canada are projected to spend 2.53% of GDP this year on core defence.

(Reporting by Lili Bayer; editing by Bart Meijer)

Key Takeaways

  • Baltic states and Poland exceed the 3.5% core defence spending threshold well ahead of the 2035 target (theworlddata.com)
  • Several countries including Belgium, Portugal, Italy are only just above 2%, and some like Slovenia are planning to cross that mark in 2026 (theworlddata.com)
  • Europe and Canada’s overall spending on core defence averages 2.53% of GDP in 2026, showing significant momentum but still shy of the 3.5% core-plus-security-investment combined target (theworlddata.com)

References

Frequently Asked Questions

Which NATO member is projected to spend the most on defence in 2026?
Lithuania is estimated to spend 5.33% of its GDP on core defence, making it the top spender among NATO members.
What is the updated NATO defence spending goal?
NATO members have pledged to spend 3.5% of GDP on core defence items by 2035, up from the previous 2% target.
How many NATO members are expected to exceed the 3.5% GDP defence target by 2026?
Five members—Lithuania, Estonia, Latvia, Poland, and Greece—are estimated to exceed the 3.5% GDP target.
Which countries are just meeting or slightly exceeding the 2% defence spending target?
Belgium, Portugal, and Italy are among countries estimated to spend just above 2% of GDP on core defence.
How much are European NATO members and Canada projected to spend on core defence in 2026?
European NATO members and Canada are projected to spend 2.53% of GDP on core defence in 2026.

Tags

Related Articles

More from Headlines

Explore more articles in the Headlines category