Unprecedented Surge: 2024 Sees Military Expenditure Soar to New Heights Since Cold War Era

Global military expenditures surged to $2718 billion in 2024, reflecting a growth of 9.4 percent in actual terms from 2023, marking the most significant annual increase since the conclusion of the Cold War. Defense budgets escalated in every region worldwide, with notably swift growth observed in both Europe and the Middle East. The five principal military spenders—the United States, China, Russia, Germany, and India—comprised 60 percent of the worldwide total, with combined expenditures of $1635 billion, as reported today by the Stockholm International Peace Research Institute (SIPRI).

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Global military expenditures notch the steepest rise since the Cold War’s end

Global military spending advanced to $2718 billion in 2024, marking a complete decade of ongoing increases. Every one of the world’s 15 largest military spenders in 2024 expanded their military budgets. The global military burden—the fraction of global gross domestic product (GDP) allocated to defense spending—elevated to 2.5 percent in 2024.

‘More than 100 nations globally heightened their military expenditures in 2024. As governments increasingly emphasize military security, frequently at the expense of other fiscal areas, the economic and social trade-offs could substantially impact societies for years ahead,’ noted Xiao Liang, Researcher with the SIPRI Military Expenditure and Arms Production Programme.

European spending spike propels global totals

Military expenses in Europe (including Russia) surged by 17 percent to $693 billion, serving as the primary driver for the global uptick in 2024. With the conflict in Ukraine entering its third year, defense budgets continued to rise continent-wide, pushing European military expenditure beyond the level recorded at the close of the Cold War. Every European country except Malta raised its military spending in 2024.

Russia‘s defense budget reached an estimated $149 billion in 2024, a 38 percent escalation from 2023 and double the 2015 figure. This constituted 7.1 percent of Russia’s GDP and 19 percent of total government spending. Ukraine‘s military budget rose by 2.9 percent to hit $64.7 billion—comparable to 43 percent of Russia’s expenditure. With 34 percent of its GDP allocated to defense, Ukraine bore the heaviest military burden of any country in 2024.

‘Russia has significantly ramped up its military spending once again, expanding the spending gap with Ukraine,’ remarked Diego Lopes da Silva, Senior Researcher at the SIPRI Military Expenditure and Arms Production Programme. ‘Currently, Ukraine channels all its tax revenues toward defense. Managing military budgets in such constrained fiscal conditions will be a formidable challenge for Ukraine.’

Numerous nations in Central and Western Europe experienced unprecedented surges in military expenditures in 2024 as they rolled out new spending commitments and extensive procurement initiatives. Germany‘s defense budget grew by 28 percent to $88.5 billion, positioning it as the top military spender in Central and Western Europe and the fourth largest globally. Poland saw its military expenses soar by 31 percent to $38.0 billion in 2024, accounting for 4.2 percent of Poland’s GDP.

‘For the first time since reunification, Germany has emerged as the largest military spender in Western Europe, attributed to the €100 billion special defense fund unveiled in 2022,’ stated Lorenzo Scarazzato, Researcher with the SIPRI Military Expenditure and Arms Production Programme. ‘The latest policies enacted in Germany and numerous other European nations indicate that Europe has embarked on a phase of heightened and escalating military expenditures likely to persist for the foreseeable future.’

Record number of NATO members achieve 2 percent of GDP in military spending

All NATO allies raised their military expenditure in 2024. The total military spending by NATO members reached $1506 billion, constituting 55 percent of global military outlays. Of the 32 NATO members, 18 invested at least 2.0 percent of GDP in military capabilities according to SIPRI methodology, up from 11 in 2023, marking the highest figure since NATO adopted the spending guideline in 2014.

Military expenditures by the USA climbed by 5.7 percent, reaching $997 billion, which accounted for 66 percent of total NATO expenditure and 37 percent of global military outlays in 2024. A notable portion of the US 2024 budget was earmarked for enhancing military capabilities and modernizing the US nuclear arsenal to maintain a strategic advantage over Russia and China. European NATO members collectively spent $454 billion, representing 30 percent of the alliance’s total expenditure.

‘The swift increases in spending among European NATO members stemmed mainly from the persistent Russian threat and concerns regarding potential US disengagement from the alliance,’ stated Jade Guiberteau Ricard, Researcher with the SIPRI Military Expenditure and Arms Production Programme. ‘It’s crucial to note that merely ramping up expenditures doesn’t automatically translate to significantly enhanced military capability or independence from the USA—those are far more intricate challenges.’

Military investment in the Middle East experiences significant growth

Military spending in the Middle East reached an estimated $243 billion in 2024, reflecting a 15 percent rise from 2023 and a 19 percent increase since 2015.

Israel‘s military outlay skyrocketed by 65 percent to $46.5 billion in 2024, marking the sharpest annual increase since the Six-Day War in 1967, as it continued military operations in Gaza and intensified conflicts with Hezbollah in southern Lebanon. Its military burden rose to 8.8 percent of GDP, the second highest globally. Lebanon also increased its military expenditure by 58 percent in 2024 to $635 million, following several years of reduced spending due to economic crises and political instability.

‘Despite widespread predictions that numerous Middle Eastern nations would elevate their military expenditures in 2024, notable increases were mostly confined to Israel and Lebanon,’ noted Zubaida Karim, Researcher with the SIPRI Military Expenditure and Arms Production Programme. ‘In other regions, countries either refrained from significantly boosting spending in response to the conflict in Gaza or faced economic barriers that impeded increases.’

Iran‘s military outlay declined by 10 percent in real terms to $7.9 billion in 2024 despite its involvement in regional conflicts and support for local proxies. The impact of sanctions on Iran severely restricted its ability to enhance its military budget.

China and its neighboring regions continue their military escalations

China, the globe’s second largest military spender, ramped up its military budget by 7.0 percent to an estimated $314 billion, continuing three decades of uninterrupted growth. China constituted 50 percent of all military spending in Asia and Oceania, enhancing its military modernization while expanding its cyber warfare capabilities and nuclear arsenal.

Japan increased its military expenditure by 21 percent to $55.3 billion in 2024, marking the largest annual rise since 1952. Its military burden reached 1.4 percent of GDP, the most significant figure since 1958. India, ranking fifth globally in military spending, saw its budget grow by 1.6 percent to $86.1 billion. Expenditure by Taiwan grew by 1.8 percent in 2024 to reach $16.5 billion.

‘Prominent military spenders in the Asia–Pacific region are channeling increasing resources into advanced military capabilities,’ stated Nan Tian, Director of the SIPRI Military Expenditure and Arms Production Programme. ‘With numerous unresolved disputes and rising tensions, these investments risk igniting a perilous arms race within the region.’

Other significant developments

Military expenditures in Africa totaled $52.1 billion in 2024, a 3.0 percent rise from 2023 and 11 percent above 2015 levels.

In 2024, the United Kingdom elevated its military expenditures by 2.8 percent to reach $81.8 billion, positioning it as the sixth largest spender globally. Military spending by France grew by 6.1 percent to reach $64.7 billion, making it the ninth largest spender.

Sweden augmented its military budget by 34 percent in 2024, bringing it to $12.0 billion. In its inaugural year of NATO membership, Sweden’s military burden attained 2.0 percent of GDP.

Saudi Arabia held the title of the largest military spender in the Middle East in 2024, coming in as the seventh largest globally. Its military expenditure experienced a modest rise of 1.5 percent, reaching approximately $80.3 billion, which remains 20 percent lower than in 2015 when the nation’s oil revenues peaked.

Military spending by Myanmar saw a dramatic increase of 66 percent in 2024, reaching an estimated $5.0 billion—the highest growth rate in Asia and Oceania—as domestic conflicts escalated.

Mexico raised its military spending by 39 percent to $16.7 billion in 2024, primarily fueled by increased funding for the National Guard and the navy, which are actively engaged in the government’s militarized response to organized crime.