European Security — 2026-04-27
SIPRI: Global Military Spending Hits Record $2.89 Trillion as Europe Surges 14 Percent
SIPRI reported on April 27 that global military expenditure reached $2,887 billion in 2025, a 2.9 percent real-terms increase and the 11th consecutive annual rise, lifting the global military burden to 2.5 percent of GDP. US spending fell 7.5 percent to $954 billion; SIPRI attributed the drop to the absence of newly approved Ukraine military aid packages during the year. European spending rose 14 percent to $864 billion, the sharpest annual increase for NATO members since 1953, with Germany up 24 percent to $114 billion and Spain up 50 percent to $40.2 billion. Asia and Oceania posted 8.1 percent growth to $681 billion, led by China at $336 billion, Japan up 9.7 percent, and Taiwan up 14 percent.
Analysis
Germany's 2 percent breach reflects institutional realignment, not a one-year spike: Berlin's procurement pipeline will likely sustain the threshold through at least 2028. The 7.5 percent US contraction, driven by frozen Ukraine aid, is politically contingent rather than a strategic drawdown, a distinction European planners must navigate as they absorb both Ukraine's demand signal and Washington's supply uncertainty. Russia's 7.5 percent of GDP allocation, read alongside sustained barrage escalation in Ukraine, confirms Moscow is maintaining a wartime industrial footing with no spending deceleration visible in SIPRI's data. The 11th consecutive annual increase marks the longest unbroken climb in SIPRI's dataset, though procurement and personnel inflation has outpaced headline budgets across most NATO members, meaning output-adjusted capability growth is materially lower than the spending figures suggest.
Germany's 2 percent breach reflects institutional realignment, not a one-year spike: Berlin's procurement pipeline will likely sustain the threshold through at least 2028. The 7.5 percent US contraction, driven by frozen Ukraine aid, is politically contingent rather than a strategic drawdown, a distinction European planners must navigate as they absorb both Ukraine's demand signal and Washington's supply uncertainty. Russia's 7.5 percent of GDP allocation, read alongside sustained barrage escalation in Ukraine, confirms Moscow is maintaining a wartime industrial footing with no spending deceleration visible in SIPRI's data. The 11th consecutive annual increase marks the longest unbroken climb in SIPRI's dataset, though procurement and personnel inflation has outpaced headline budgets across most NATO members, meaning output-adjusted capability growth is materially lower than the spending figures suggest.
3 sources
- Global military spending rise continues as European and Asian expenditures surge -
SIPRI - Global military spending rises 2.9% despite US decline over Ukraine freeze -
Reuters via Investing.com - Global military spending reaches record $2.89 trillion in 2025 as Europe and Asia drive sharp increases, SIPRI says -
Defence Industry Europe