Global military spending soars to $2.7 trillion in 2024; Russia, US, China, India, Germany account for 60%

Amid the major global conflicts, including the Russia-Ukraine war, and the Israel-Palestine conflict, world military expenditure reached USD 2718 billion in 2024, an increase of 9.4 per cent in real terms from 2023 and the steepest year-on-year rise since at least the end of the cold war, according to new data by the Stockholm International Peace Research Institute ( SIPRI).

Military spending increased in all world regions, with particularly rapid growth in both Europe and the Middle East. The top five military spenders--the United States, China, Russia, Germany and India--accounted for 60 per cent of the global total, with combined spending of USD 1635 billion.

SIPRI, an independent international institute dedicated to research into conflict, armaments, arms control and disarmament, in its report on Monday, stated that military spending in Europe (including Russia) rose by 17 per cent to USD 693 billion and was the main contributor to the global increase in 2024. All European countries increased their military spending in 2024 except Malta.

Russia's military expenditure reached an estimated USD 149 billion in 2024, a 38 per cent increase from 2023 and double the level in 2015. This represented 7.1 per cent of Russia's GDP and 19 per cent of all Russian government spending. Ukraine's total military expenditure grew by 2.9 per cent to reach USD 64.7 billion, equivalent to 43 per cent of Russia's spending. At 34 per cent of GDP, Ukraine had the largest military burden of any country in 2024.

Several countries in Central and Western Europe saw unprecedented rises in their military expenditure in 2024 as they implemented new spending pledges and large-scale procurement plans. Germany's military expenditure increased by 28 per cent to reach USD 88.5 billion, making it the biggest spender in Central and Western Europe and the fourth biggest in the world. Poland's military spending grew by 31 per cent to USD 38.0 billion in 2024, representing 4.2 per cent of Poland's GDP, SIPRI noted.

All NATO members also raised their military expenditure in 2024. Total military spending by NATO members amounted to USD 1506 billion, or 55 per cent of global military expenditure. Of the 32 NATO members, 18 spent at least 2.0 per cent of GDP on their militaries, up from 11 in 2023 and the highest number since NATO adopted the spending guideline in 2014.

Military spending by the US rose by 5.7 per cent to reach USD 997 billion, which was 66 per cent of total NATO spending and 37 per cent of world military spending in 2024.

Military expenditure in the Middle East reached an estimated USD 243 billion in 2024, an increase of 15 per cent from 2023 and 19 per cent more than in 2015.

Israel's military expenditure surged by 65 per cent to USD 46.5 billion in 2024, the steepest annual increase since the Six-Day War in 1967. Its military burden rose to 8.8 per cent of GDP, the second highest in the world. Lebanon's military spending rose by 58 per cent in 2024 to USD 635 million, after several years of lower spending due to economic crisis and political turmoil.

However, Iran's military spending fell by 10 per cent in real terms to USD 7.9 billion in 2024 despite its involvement in regional conflicts and its support for regional proxies, SIPRI reported.

Meanwhile, China, the world's second-largest military spender, increased its military expenditure by 7 per cent to an estimated USD 314 billion, marking three decades of consecutive growth. China accounted for 50 per cent of all military spending in Asia and Oceania, investing in the continued modernisation of its military and expansion of its cyberwarfare capabilities and nuclear arsenal.