Global military spending surges amid war, rising tensions and insecurity (2024)

(Stockholm, 22 April 2024) Total global military expenditure reached $2443 billion in 2023, an increase of 6.8 per cent in real terms from 2022. This was the steepest year-on-year increase since 2009. The 10 largest spenders in 2023—led by the United States, China and Russia—all increased their military spending, according to new data on global military spending published today by the Stockholm International Peace Research Institute (SIPRI), available atwww.sipri.org.

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Military expenditure increases in all regions

World military expenditure rose for the ninth consecutive year to an all-time high of $2443 billion. For the first time since 2009, military expenditure went up in all five of the geographical regions defined by SIPRI, with particularly large increases recorded in Europe, Asia and Oceania and the Middle East.

The unprecedented rise in military spending is a direct response to the global deterioration in peace and security,’ said Nan Tian, Senior Researcher with SIPRI’s Military Expenditure and Arms Production Programme. ‘States are prioritizing military strength but they risk an action–reaction spiral in the increasingly volatile geopolitical and security landscape.’

Military aid to Ukraine narrowsspending gap with Russia

Russia’s military spending increased by 24 per cent to an estimated $109 billion in 2023, marking a 57 per cent rise since 2014, the year that Russia annexed Crimea. In 2023 Russia’s military spending made up 16 per cent of total government spending and its military burden (military spending as a share of gross domestic product, GDP) was 5.9 per cent.

Ukraine was the eighth largest spender in 2023, after a spending surge of 51 per cent to reach $64.8 billion. This gave Ukraine a military burden of 37 per cent and represented 58 per cent of total government spending.

Ukraine’s military spending in 2023 was 59 per cent the size of Russia’s. However, Ukraine also received at least $35 billion in military aid during the year, including $25.4 billion from the USA. Combined, this aid and Ukraine’s own military spending were equivalent to about 91 per cent of Russian spending.

USA remains NATO’s major spender but European members increase share

In 2023 the 31 NATO members accounted for $1341 billion, equal to 55 per cent of the world’s military expenditure. Military spending by the USA rose by 2.3 per centto reach $916 billion in 2023, representing 68 per cent of total NATO military spending. In 2023 most European NATO members increased their military expenditure. Their combined share of the NATO total was 28 per cent, the highest in a decade. The remaining 4 per cent came from Canada and Türkiye.

‘For European NATO states, the past two years of war in Ukraine have fundamentally changed the security outlook,’ saidLorenzo Scarazzato, Researcher with SIPRI’s Military Expenditure and Arms Production Programme.‘This shift in threat perceptions is reflected in growing shares of GDP being directed towards military spending, with the NATO target of 2 per cent increasingly being seen as a baseline rather than a threshold to reach.’

A decade after NATO members formally committed to a target of spending 2 per cent of GDP on the military, 11 out of 31 NATO members met or surpassed this level in 2023—the highest number since the commitment was made.Another targetof directing at least 20 per cent of military spending to ‘equipment spending’was met by 28 NATO members in 2023, up from 7 in 2014.

China’s rising military expenditure drives up spending by neighbours

China, the world’s second largest military spender, allocated an estimated $296 billion to the military in 2023, an increase of 6.0 per cent from 2022. This was the 29th consecutive year-on-year rise in China’s military expenditure. China accounted for half of total military spending across the Asia and Oceania region. Several of China’s neighbours have linked their own spending increases to China’s rising military expenditure.

Japan allocated $50.2 billion to its military in 2023, which was 11 per cent more than in 2022.Taiwan’s military expenditure also grew by 11 per cent in 2023, reaching $16.6 billion.

‘China is directing much of its growing military budget to boost the combat readiness of the People’s Liberation Army,’ said Xiao Liang, Researcher with SIPRI’s Military Expenditure and Arms Production Programme. ‘This has prompted the governments of Japan, Taiwan and others to significantly build up their military capabilities, a trend that will accelerate further in the coming years.’

War and tensions in the Middle East fuel biggest spending increase of past decade

Estimated military expenditure in the Middle East increased by 9.0 per cent to $200 billion in 2023. This was the highest annual growth rate in the region seen in the past decade.

Israel’s military spending—the second largest in the regionafter Saudi Arabia—grew by 24 per cent to reach $27.5 billion in 2023. The spending increase was mainly driven by Israel’s large-scale offensive in Gaza in response to the attack on southern Israel by Hamas in October 2023.

‘The large increase in military spending in the Middle East in 2023 reflected the rapidly shifting situation in the region—from the warming of diplomatic relations between Israel and several Arab countries in recent years to the outbreak of a major war in Gaza and fears of a region-wide conflict,’ said Diego Lopes da Silva, Senior Researcherwith SIPRI’s Military Expenditure and Arms Production Programme.

Military action against organized crime pushes up spending in Central America and the Caribbean

Military spending in Central America and the Caribbean in 2023 was 54 per cent higher than in 2014. Escalating crime levels have led to the increased use of military forces against criminal gangs in several countries in the subregion.

Military spending by the Dominican Republicrose by 14 per cent in 2023 in response to worsening gang violence in neighbouring Haiti. The Dominican Republic’s military spending has risen steeply since 2021, when the assassination of Haitian President Jovenel Moïse threw Haiti into crisis.

In Mexico, military expenditure reached $11.8 billion in 2023, a 55 per cent increase from 2014 (but a 1.5 per cent decrease from 2022). Allocations to the Guardia Nacional (National Guard)—a militarized force used to curb criminal activity—rose from 0.7 per cent of Mexico’s total military expenditure in 2019, when the force was created, to 11 per cent in 2023.

‘The use of the military to suppress gang violence has been a growing trend in the region for years as governments are either unable to address the problem using conventional means or prefer immediate—often more violent—responses,’ said Diego Lopes da Silva, Senior Researcherwith SIPRI’s Military Expenditure and Arms Production Programme.

Other notable developments

  • India was the fourth largest military spender globally in 2023. At $83.6 billion, its military expenditure was 4.2 per cent higher than in 2022.
  • The largest percentage increase in military spending by any country in 2023 was seen in the Democratic Republic of the Congo (+105 per cent), where there has been protracted conflict between the government and non-state armed groups. South Sudan recorded the second largest percentage increase (+78 per cent) amid internal violence and spillover from the Sudanese civil war.
  • Poland’s military spending, the 14th highest in the world, was $31.6 billion after growing by 75 per cent between 2022 and 2023—by far the largest annual increase by any European country.
  • In 2023 Brazil’s military spending increased by 3.1 per cent to $22.9 billion. Citing the NATO spending guideline, members of Brazil’s Congress submitted a constitutional amendment to the Senate in 2023 that aims to increase Brazil’s military burden to an annual minimum of 2 per cent of GDP (up from 1.1 per cent in 2023).
  • Algeria’s military spending grew by 76 per cent to reach $18.3 billion. This was the highest level of expenditure ever recorded by Algeriaand was largely due to a sharp rise in revenue from gas exports to countries in Europe as theymoved away from Russian supplies.
  • Iran was the fourth largest military spender in the Middle East in 2023 with $10.3 billion. According to available data, the share of military spending allocated to the Islamic Revolutionary Guard Corps grew from 27 per cent to 37 per cent between 2019 and 2023.

For editors

SIPRI monitors developments in military expenditure worldwide and maintains the most comprehensive, consistent and extensive publicly available data source on military expenditure.The annual update of the SIPRI Military Expenditure Database is accessible from today atwww.sipri.org.

All percentage changes are expressed in real terms (constant 2022 prices). Military expenditure refers to all government spending on current military forces and activities, including salaries and benefits, operational expenses, arms and equipment purchases, military construction, research and development, and central administration, command and support. SIPRI therefore discourages the use of terms such as ‘arms spending’ when referring to military expenditure, as spending on armaments is usually only a minority of the total.

Media contacts

For information or interview requests contact Mimmi Shen ([email protected], +46 766 286 133) or Stephanie Blenckner ([email protected], +46 8 655 97 47).

Global military spending surges amid war, rising tensions and insecurity (2024)

FAQs

Global military spending surges amid war, rising tensions and insecurity? ›

Global defense spending has reached a record high of $2.44 trillion as international tensions continue to escalate1. With 56 identified conflicts currently occurring—the most since World War II2—nations are racing to modernize their military capabilities, driving spending to increase at the fastest pace in a decade3.

What is the global surge in military spending? ›

A new study shows that global military expenditure surged to $2.443 trillion in 2023, driven by heightened tensions and regional conflicts, with top spenders like the US, China, and Russia leading the increase, while regional dynamics and emerging trends shaped spending patterns worldwide.

What are the results of increasing military spending? ›

As such, when a country spends heavily on military, it can have significant impacts on its balance sheet. As debt grows, so often does interest and the cost of borrowing. In theory, increased debt can eventually drag on economic growth and drive taxes higher.

How does military spending affect the economy? ›

Increased military spending leads to slower economic growth. Military spending tends to have a negative impact on economic growth. Over a 20-year period, a 1% increase in military spending will decrease a country's economic growth by 9%.

What is the global military spending? ›

Global military spending

The value of military spending globally has grown steadily in the past years and reached 2.44 trillion U.S. dollars in 2023. Reasons for this are the outbreak of the Russia-Ukraine war in 2022, the war in Gaza, as well as increasing tensions in the South China Sea.

Who spends the most on the military in 2024? ›

In February, NATO Secretary-General Jens Stoltenberg said: “In 2024, NATO allies in Europe will invest a combined total of $380bn in defence. For the first time, this amounts to 2 percent of their combined GDP.” The United States remains the world's largest military spender by far.

Is the US military increasing? ›

There were about 1.3 million active-duty military in 2023, 41% fewer than in 1987 — the recent peak. The military also employed over 778,000 civilians. The military's size has been consistent since 1998, growing or shrinking by 3% or less in any year.

What happens if we reduce military spending? ›

Reducing defense spending would not have clear effects on aggregate hours worked, saving, or investment. However, eliminating military jobs could have significant short-term effects, including a reduced demand for goods and services, which would probably reduce economic output.

Why is there an increase in military spending? ›

He said: “The unprecedented rise in military spending is a direct response to the global deterioration in peace and security. “States are prioritising military strength, but they risk an action-reaction spiral in the increasingly volatile geopolitical and security landscape.”

What is an example of wasteful military spending? ›

“From buying $14,000 toilet seats to losing track of warehouses full of spare parts, the Department of Defense has been plagued by wasteful spending for decades.

Why is military spending an issue? ›

While military expenditures continues to be excessive, investment in conflict resolution, peacebuilding, and development lags far behind. Since the end of the Cold War, militarism has been growing in response to an increasingly unstable world, propelling the world even further into tension and war.

Which US state has the strongest military? ›

Geographic stationing of active duty United States Armed Forces personnel in 2022, by U.S. state
CharacteristicNumber of U.S. Armed Forces personnel
California158,754
Virginia125,162
Texas112,583
North Carolina94,540
9 more rows
Jul 5, 2024

How does the military and war impact the economy? ›

The wars have also impacted interest rates charged to borrowers by banks and other creditors. This is the result of war spending financed entirely by debt, which has contributed to a higher ratio of national debt to Gross Domestic Product (GDP) and subsequent rising long-term interest rates.

What country is number 1 in military spending? ›

United States

What country has the biggest military? ›

China has the largest standing army, with over 2 million active personnel. With increasing defense spending over the last decades, the country also ranks third in the number of tanks and second in the number of aircraft carriers in service.

Which country has the highest budget in the world? ›

Download Table Data
CountryGross National ExpenditureData Year
United States$24.18 Tn2021
China$17.30 Tn2021
Japan$5.03 Tn2021
Germany$3.99 Tn2022
105 more rows

What is the trend in defense spending? ›

Defense spending in the United States is predicted to increase every year until 2034. Defense outlays in the United States amounted to 891 billion U.S. dollars in 2023.

What is the trend in the world military expenditure report? ›

points to 6.9 per cent in 2023 and world military spending per person was the highest since 1990, at $306.

Which countries are increasing military spending? ›

ș The USA and China remained the top two biggest spenders in the world and both increased their military spending in 2023. US spending was $916 billion while Chinese spending was an estimated $296 billion. ș Russia's military spending grew by 24 per cent in 2023 to an estimated $109 billion.

Is global defense spending in decline? ›

(Stockholm, 22 April 2024) Total global military expenditure reached $2443 billion in 2023, an increase of 6.8 per cent in real terms from 2022. This was the steepest year-on-year increase since 2009.

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