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Global military spending rises 2.9% despite US decline over Ukraine freeze

Published by Global Banking & Finance Review

Posted on April 26, 2026

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· Last updated: April 26, 2026

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Global military spending rises 2.9% despite US decline over Ukraine freeze
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By Johan Ahlander STOCKHOLM, April 27 (Reuters) - Global military spending rose 2.9% in 2025 despite a 7.5% decline in the United States as President Donald Trump halted new financial military aid to

Global Military Spending Hits $2.89 Trillion as Europe Boosts Defence Budgets

Key Trends and Regional Shifts in Military Expenditure

By Johan Ahlander

STOCKHOLM, April 27 (Reuters) - Global military spending rose 2.9% in 2025 despite a 7.5% decline in the United States as President Donald Trump halted new financial military aid to Ukraine, a report by a conflict think-tank showed on Monday.

Expenditure increased to $2.89 trillion in 2025, rising for the 11th consecutive year and taking spending as a share of global gross domestic product (GDP) to 2.5% - its highest level since 2009, according to the data from the Stockholm International Peace Research Institute (SIPRI).

Global Spending Overview

"Given the range of current crises, as well as many states' long-term military spending targets, this growth will probably continue through 2026 and beyond," SIPRI said in the report.

The top three military spenders, the U.S., China and Russia, accounted for a combined $1.48 trillion, or 51% of global spending.

United States Military Expenditure

U.S. military spending fell to $954 billion in 2025, mainly because no new financial military assistance for Ukraine was approved, the report said. In the previous three years, U.S. military funding to Ukraine totalled $127 billion.

"The decline in U.S. military expenditure in 2025 is likely to be short-lived," SIPRI said.

Future U.S. Spending Projections

"Spending approved by the U.S. Congress for 2026 has risen to over $1 trillion, a substantial increase from 2025, and could rise further to $1.5 trillion in 2027," it said.

European Defence Budgets

The main contributor to higher global spending was a 14% rise in Europe to $864 billion.

Impact of Russia-Ukraine War and NATO Members

Spending by Russia and Ukraine continued to grow in the fourth year of the war, while increases by European members of the NATO alliance led to the sharpest annual growth in Central and Western Europe since the end of the Cold War.

Other Regional Trends

Spending by Israel fell 4.9% to $48.3 billion, as the war in Gaza wound down in 2025, while spending in Iran declined for the second consecutive year, falling by 5.6% to $7.4 billion.

(Reporting by Johan Ahlander;Editing by Helen Popper)

Key Takeaways

  • Global military expenditure climbed 2.9% in 2025, reaching $2.887 trillion and marking the 11th straight year of growth, with the global military burden rising to 2.5%—its highest level since 2009 (sipri.org).
  • U.S. spending fell 7.5% to $954 billion, largely due to no new military aid for Ukraine—contrasting with $127 billion approved over the prior three years—but Congress approved over $1 trillion for 2026, with projections up to $1.5 trillion for 2027 (sipri.org).
  • European military spending surged 14% to $864 billion, largely driven by elevated NATO commitments, with Germany and Spain notably increasing their burdens above 2% of GDP; Asia and Oceania grew 8.1% as well (sipri.org).

References

Frequently Asked Questions

How much did global military spending increase in 2025?
Global military spending rose by 2.9% in 2025, reaching $2.89 trillion according to SIPRI.
Why did US military spending decline in 2025?
US military spending declined by 7.5% mainly because President Trump halted new financial military aid to Ukraine.
Which countries are the top military spenders?
The top three military spenders in 2025 were the US, China, and Russia, accounting for 51% of global spending.
What caused the increase in European military spending?
European military spending rose by 14%, driven by increased expenditures from Russia, Ukraine, and NATO members.
What is the outlook for future US military spending?
US military spending is expected to rise to over $1 trillion in 2026 and potentially $1.5 trillion in 2027.

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