Global military spending reached a record $2.88 trillion in 2025, up 2.9 percent on the year, the Stockholm International Peace Research Institute said. That equates to roughly $350 per person worldwide. The United States remained by far the largest spender at $954bn, followed by China, Russia, Germany and India. The rise caps a decade-long increase in defence budgets and sharpens questions about trade-offs with public services and international stability.

Numbers and a long upward sweep

The global total of $2.88 trillion marks the highest level recorded in modern history, SIPRI said. Spending has climbed steadily over the past decade. In 2016, world military outlays were $1.69 trillion. That means spending has increased by more than $1tn in less than a decade.

Military budgets haven't risen in a straight line. SIPRI's historical summary shows large swings tied to major conflicts and geopolitical shifts. Global spending jumped from $284bn in 1950 to $788bn by 1953 during the Korean War. The Cold War kept annual totals in the low trillions through the 1960s and 1970s. By 1988, a peak of $1.7 trillion reflected intense superpower competition before falling to $1.4 trillion after the Cold War ended in 1991.

After the September 11, 2001 attacks, budgets rose again and global spending passed $2 trillion for the first time in 2009. More recently, SIPRI points to 2014 as an inflection point. Russia's annexation of Crimea prompted NATO members to aim for defence outlays of 2 percent of GDP. That target helped spur renewed investment across Europe.

Who pays most

The United States accounted for the largest share of the 2025 total. At $954bn, US spending alone exceeded the combined totals of the next six largest spenders, SIPRI said. China came second at $336bn. Russia was third with $190bn. Germany spent $114bn and India $92bn. Together those five countries made up 58 percent of global military expenditure.

SIPRI also tallied long-run US spending. Since 1949, the United States has spent at least $53.5 trillion on its military, the institute said. That figure represents about 51.5 percent of a global cumulative total that exceeds $100 trillion over the same period. Those long-term totals show how defence budgets have shaped public accounts for decades.

Regional shifts and European build-up

The recent decade has seen a clear regional reorientation. NATO members adopted a 2 percent of GDP spending benchmark after 2014. Since 2016, military spending in Europe doubled, by SIPRI's count. Eastern Europe recorded the steepest rise. Spending there increased by 173 percent, the largest growth of any subregion.

Mastheads

Those regional changes matter for alliances and procurement. Rapid increases in defence budgets alter demand for weapons, equipment and maintenance. They also change the priorities of national treasuries. Governments that raise defence spending must fund higher personnel costs and new platforms while managing public commitments elsewhere.

Economic trade-offs and public spending

A core question the data raises is how rising militarisation sits alongside other public priorities. SIPRI's figures fuel debate about Balancing defence and spending on health, education and social services. When governments allocate more to weapons and armed forces, less fiscal space remains for other public services unless taxes rise or deficits widen.

The $2.88tn global total is equivalent to about $350 per person worldwide. That metric highlights the scale of resources being channelled into defence. For countries with strained public finances, shifting millions or billions into the military can force difficult budget choices. Those choices affect voters and public institutions alike.

The rise in global military spending also shapes international arms sales and supply chains. SIPRI's visual analysis shows which countries are the leading suppliers and how sales tracked alongside budgets. Higher demand tends to boost exports from major defence producers and increase competition among manufacturers.

That dynamic has industrial and diplomatic consequences. Defence production supports jobs and industrial capacity in producing countries. It also binds buyers and suppliers into long-term maintenance and training relationships. Those ties can influence diplomacy and strategic partnerships.

The British government now operates in an environment where global defence budgets are larger than at any point since the Cold War, SIPRI's numbers show. Regional increases in Europe, and the sustained lead of the United States, change the choices facing ministers in Westminster. Higher global demand raises procurement costs and can push up the price of complex platforms. At the same time, budget pressure from larger defence bills can squeeze domestic programmes.

Britain is part of the wider European and transatlantic security context described by SIPRI. That context shapes procurement, alliance commitments and foreign policy planning. Defence manufacturers and the Treasury must weigh the cost of investment in armed forces against other public spending needs.

For governments, the key choice is how to balance security needs with social spending and economic management. SIPRI's data shows large sums moving into defence. That reality will affect fiscal debates and electoral politics in many countries. Where spending rises sharply, voters and public officials will face trade-offs over services and taxation.

At the international level, larger defence budgets make arms procurement a more prominent part of diplomacy. Countries that export weapons may gain leverage. Countries that import face longer-term dependencies on suppliers for maintenance and upgrades. Those practical consequences influence alliance cohesion and the shape of regional tensions.

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Since 2016, global military spending has risen by more than $1tn, SIPRI said.

This article was created with AI assistance.