Global Military Expenditure Hits Record $2.7 Trillion in 2024

In 2024, global military expenses rose dramatically by 9.4%, bringing the total to $2.7 trillion. This marks the most significant annual growth since the Cold War, as reported by the Stockholm International Peace Research Institute (SIPRI). A notable contributor to this surge was the heightened military spending in Europe as a reaction to the ongoing war in Ukraine.

European nations collectively raised their military budgets by 17%, amounting to $693 billion. In particular, Russia's military investment saw a notable increase of 38%, reaching approximately $149 billion, while Ukraine's military spending grew by 2.9% to $64.7 billion, which accounted for a staggering 34% of its Gross Domestic Product (GDP). SIPRI highlighted that this is the highest military expenditure proportion relative to GDP among nations in the previous year.

According to Diego Lopes da Silva, a senior researcher at SIPRI, Russia's substantial military spending exacerbates the disparity with Ukraine, which is currently allocating all its tax revenue to military needs. In light of the strained fiscal environment, sustaining or increasing military spending will be a challenging task for Ukraine. Additionally, all NATO member states reported increases in military budgets, with the number of nations spending at least 2% of their GDP at its highest since the guideline was adopted in 2014.

Researcher Jade Guiberteau Ricard elaborated on the motivations behind these spending increases, linking them to the ongoing threats from Russia and concerns about potential reductions in U.S. involvement in NATO. However, he cautioned that merely increasing spending does not guarantee enhanced military capabilities or independence from U.S. support, as these are more complex challenges that require multifaceted strategies.

In the Middle East, both Israel and Lebanon significantly increased their military expenditures, with Israel's spending soaring by 65% to $46.5 billion and Lebanon's rising by 58% to $635 million. Researcher Zubaida Karim noted that while there had been expectations for broader military spending increases in the region due to the war in Gaza, many countries faced economic restrictions that limited their ability to do so, with Iran's military spending actually declining by 10% in real terms to $7.9 billion.

In the United States, military expenditures grew by 5.7% to $997 billion, comprising 66% of NATO's total spending and 37% of the world's military expenditure. Meanwhile, China, which holds the position as the second-largest military spender globally, increased its budget by 7% to $314 billion, accounting for half of military spending in the Asia-Pacific region. SIPRI's Nan Tian warned that the substantial investments in advanced military capabilities across this region could potentially lead to a dangerous arms race, fueled by various ongoing disputes and rising tensions.