According to SIPRI, global military expenditures in 2025 accounted for 2.5% of the world’s GDP, marking the highest level since 2009. The rate of expenditure growth has slowed compared to the previous year, primarily due to decreased spending in the United States. Conversely, excluding the United States, cumulative global expenditures increased by 9.2%. Military spending expert Xiao Liang commented that geopolitical uncertainty and ongoing conflicts are driving armament programs, suggesting that budget increases are likely to continue into 2026.
During the reporting period, Russia increased military expenditures by 5.9% to $190 billion (7.5% of GDP), ranking third after the United States ($954 billion) and China ($336 billion). Russia’s spending growth rate was the slowest since the onset of the Ukraine conflict; however, its share of state expenditures reached a record 20%, according to SIPRI. Despite sanctions, Russia is adapting by switching procurement strategies toward less expensive weaponry, including unmanned aerial vehicles, to partially compensate for the loss of more costly equipment.
Ukraine’s military expenditures rose by 20% to $84.1 billion, comprising 40% of GDP and accounting for 63% of state expenditures. Ukraine ranked seventh globally in military expenditure scale. SIPRI experts predict further growth in Ukraine’s military spending should the conflict persist.
Germany ascended to the fourth position in worldwide rankings, increasing military expenditures by 24% to $114 billion. For the first time since 1990, Germany’s defense spending exceeded 2% of GDP (2.3%), with plans to raise this figure to 3.5% by 2029. Berlin is employing off-budget financing mechanisms, including debt-funded defense spending exceeding 1% of GDP, bypassing the “debt brake” fiscal constraint to address rising expenditures. Xiao Liang observed that despite the rise in spending, Germany’s military capability is strengthening gradually, aiming for long-term independence and power.