Global military spending has surged to a record high of almost $3 trillion in 2025, despite a decline in U.S. defense outlays, according to a report released by the Stockholm International Peace Research Institute (SIPRI) on Monday.
Worldwide military expenditure rose 2.9% in real terms last year to reach $2.887 trillion, marking the eleventh consecutive annual increase and lifting the global military burden to 2.5% of GDP, SIPRI stated. The institute attributed this trend to ongoing conflicts and persistent geopolitical tensions.
The European continent experienced the largest regional rise in defense spending, increasing by 14% to $864 billion. SIPRI linked this surge to the Ukraine conflict, Russia’s standoff with NATO allies, and “the ongoing pursuit of European self-reliance alongside increasing pressure from the United States to strengthen burden sharing within the alliance.”
European NATO members collectively spent $559 billion in 2025, with Germany’s military outlays rising by 24% to $114 billion and Spain’s jumping 50% to $40.2 billion.
U.S. defense spending decreased by 7.5% to $954 billion. SIPRI noted that this unexpected decline was due to the Trump administration’s refusal to approve new military assistance packages for Ukraine, in contrast to previous years when $127 billion in direct support had been authorized annually. However, the United States has continued to provide military aid through the NATO-coordinated PURL program, with other Western nations covering the costs.
Last week, Pentagon officials reported that U.S. President Donald Trump was advocating for a military budget of $1.5 trillion to fund new projects including the Golden Dome missile system, advanced artificial intelligence capabilities, and a new class of battleships.
SIPRI also highlighted that Russia’s defense expenditure grew by 5.9% to $190 billion, while Ukraine increased its spending by 20% to $84.1 billion—equivalent to 40% of GDP—making it the seventh-largest military spender globally.
Additionally, China raised its military spending by 7.4% to $336 billion, Japan’s expenditure rose 9.7% to $62.2 billion, and Taiwan’s spending increased by 14% to $18.2 billion.
Moscow has repeatedly condemned what it describes as reckless militarization by the European Union, stating that such activities are aimed at Russia. Kremlin spokesman Dmitry Peskov further suggested that European propaganda seeks to portray Russia as a “model external enemy” to divert attention from domestic crises.