Global military spending hit a record high in 2024, with Ukraine spending a third of its GDP

Global military spending reached a record $2.72 trillion in 2024. This is 9.4% more than in 2023, and the fastest annual growth since the end of the Cold War.

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According to the Stockholm International Peace Research Institute (SIPRI), spending has been growing for the tenth year in a row amid growing geopolitical instability, particularly due to the wars in Ukraine and Gaza.

The US remains the leader with $997 billion (37% of the global total). It is followed by China ($314 billion), Russia ($149), Germany ($88.5) and India ($86.1). Together, these countries accounted for 60% of global spending. NATO countries spent more than $1.5 trillion, with 18 of the 32 members reaching the 2% of GDP target.

Russia increased its spending by 38% compared to 2023. Its defence budget now stands at 7.1% of GDP. Israel's spending increased by 65%, and Poland's by 31%.

However, the most impressive is Ukraine, which spent $64.7 billion, which is 34% of its GDP. This is the highest military expenditure of any country. According to SIPRI researchers, Ukraine is currently allocating all of its tax revenues to defence, which poses serious challenges to its fiscal stability.

Europe as a whole spent $693 billion, 17% more than last year. This is the highest figure since the end of the Cold War. Germany increased spending by 28%, becoming the largest spender in Western Europe.

The Middle East also recorded significant growth. Israel spent $46.5 billion - 8.8% of GDP - in response to the war in Gaza and the escalation with Iran and Hezbollah. In Asia, China continued a 30-year trend of rising military spending, which is now 59% higher than a decade ago. Japan recorded the highest growth since 1952, up 21% to $55.3 billion. This is due to territorial disputes and tensions in the region.

In total, in 2024, the world spent $334 on military needs per capita, the most since the Cold War. SIPRI warns that further increases in spending could jeopardise social programmes and economic balance.

Source: Defence News