The Stockholm International Peace Research Institute (SIPRI) released its annual report on military expenditures, which found global defense spending increased for the tenth consecutive year.
Xiao Liang, a researcher with the SIPRI Military Expenditure and Arms Production Programme, stated, “Over 100 countries around the world raised their military spending in 2024. As governments increasingly prioritize military security, often at the expense of other budget areas, the economic and social trade-offs could have significant effects on societies for years to come.”
Europe saw steep increases in military spending over the past few years due to the war in Ukraine, with both Russia and Ukraine devoting significant percentages of gross domestic product (GDP) to their militaries. However, several other European nations also increased their military spending in response to the war in Ukraine and the potential threat from Russian aggression.
Germany increased its military spending by 28% to $88.5 billion in 2024, making it one of Europe’s largest military spenders, and fourth globally, while Poland increased military spending by 31% to $38 billion.
Lorenzo Scarazzato, a researcher with SIPRI, noted, “For the first time since reunification, Germany became the biggest military spender in Western Europe, which was due to the €100 billion special defence fund announced in 2022.”
“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,” Scarazzato added.
Spending among NATO members reached 55% of global military expenditures, with 18 of the 32 NATO nations spending at least 2% of their GDP on their militaries. According to SIPRI, this represents the highest number “since NATO adopted the spending guideline in 2014.”
SIPRI researcher Jade Guiberteau Ricard, noted, “The rapid spending increases among European NATO members were driven mainly by the ongoing Russian threat and concerns about possible US disengagement within the alliance.”
Meanwhile, the Middle East also saw an increase in military expenditures, reaching an estimated $243 billion in 2024, a 15% increase in spending over 2023. As a result of the Oct. 7 Gaza War in 2023, Israel saw the largest increase (approximately 65%), up to $46.5 billion in 2024. This represents the largest increase in the nation’s military spending since the Six-Day War in 1967. Israel’s military expenses made up 8.8% of the country’s GDP, the second highest in the world.
At the same time, Lebanon, which had maintained low military expenditures during its recent economic crisis, recorded a 58% increase in 2024, driven by concerns over the Hezbollah-Israel conflict and the need to enforce the demilitarization of the area south of the Litani River.
SIPRI researcher Zubaida Karim said that despite expectations for a regional increase in military spending, “major rises were limited to Israel and Lebanon.” Karim further noted that some countries were probably “prevented from doing so by economic constraints.”
One example is Iran’s ayatollah regime. Iran’s military spending fell by 10% in 2024, despite its support for terror proxies Hezbollah, Hamas, and the Houthis, as well as its heightened confrontations with Israel, including engagements in Syria and two ballistic missile attacks on Israel in the spring and fall of 2024. SIPRI noted that “the impact of sanctions on Iran severely limited its capacity to increase spending.”
With the potential for increased conflict with Iran, the ongoing Gaza War, and the need to replenish munitions, Israel is not expected to see a significant decrease in military spending in 2025.
