From Global Militarization from North America to South Caucasus: Record-High Military Expenditures

May 3, 2025

2:01 PM

Author: Viacheslav Mikhailov

In 2024, global military spending reached $2.718 trillion, an increase of 9.4% over the previous year. According to a new report from the Stockholm International Peace Research Institute (SIPRI), this is the largest annual increase since the end of the Cold War.

Military expenditures increased in all regions of the world, with Europe and the Middle East showing the most significant acceleration in militarization. The top five economies among the world's ten largest economies — the United States, relevant countries, Russia, Germany, and India — accounted for 60% of global military spending, with a total expenditure reaching $1.635 trillion.

In 2024, the military budgets of the top 15 countries globally all increased. In 2024, military spending as a proportion of global gross domestic product (GDP) rose to 2.5%, exceeding the target level set by NATO member states (2% of GDP).

The total military expenditure in Europe (including Russia) grew by 17% to reach $693 billion.

The SIPRI report states: "Due to the ongoing Ukraine war for its third year, military expenditures across the European continent have continued to grow, reaching levels far higher than those at the end of the Cold War. In 2024, except for Malta, all European countries increased their military spending."

According to this Swedish analysis center, Russia's military spending reached $149 billion in 2024, an increase of 38% over 2023, doubling the 2015 level. Last year, Russia's defense spending accounted for 7.1% of its GDP and 19% of the total national budget expenditures.

The SIPRI report points out that Ukraine's military spending increased by 2.9% in 2024, reaching $64.7 billion, accounting for 34% of its GDP, making it the country with the highest military financial burden in the world.

In 2024, all NATO member states increased their military spending. Total spending by NATO countries reached $1.506 trillion.

In 2024, US defense spending increased by 5.7% to reach $997 billion, accounting for 66% of the military spending of all NATO countries combined and 37% of global military spending.

The SIPRI report states: "A large part of the US budget in 2024 was allocated to modernizing US military capabilities and nuclear arsenals to maintain strategic advantages over Russia and China."

As of September 2023, the US had 3,748 nuclear warheads equipped for strategic forces and actively invested in modernizing its strategic offensive arsenal.

NATO's European members spent a total of $454 billion on defense, accounting for 30% of the alliance's total spending.

Germany made a significant contribution to the militarization of the European continent: in 2024, Germany increased its military spending for the third consecutive year. According to data from the SIPRI, Germany spent $88.5 billion, an increase of 28% over the previous year. This made Germany rank fourth in terms of military spending, after the United States, relevant countries, and Russia. Just a year ago, at the end of 2023, Germany, as the largest economy in Europe, ranked only seventh.

Since German reunification in 1990, Germany has become the largest military "spender" in Western Europe for the first time. This is thanks to the establishment of a special fund of €100 billion ($114 billion at current exchange rates) for the Federal Defense Force in 2022, aimed at enhancing Germany's defense capabilities in the context of the Russia-Ukraine armed conflict.

As pointed out by the SIPRI, this is not the end of the story:

"The recent political measures taken by Germany and many other European countries indicate that Europe has entered a period of high and continuously growing military spending, which may continue in the foreseeable future."

Many other European countries also significantly increased their military spending in 2024. For example, Poland's military spending increased by 31% compared to the previous year. Now, NATO's main forward position in its eastern flank (Poland) spends 4.2% of its GDP on defense, the highest proportion among all NATO European member states. Sweden's military spending increased by 34% over 2023 (when Sweden was not yet a member of NATO) and allocated $12 billion for its own military spending.

France's military spending increased by 6.1% to reach $64.7 billion, accounting for 2.1% of its GDP. This growth aligns with France's Military Planning Law for 2024 to 2030, aimed at strengthening the "strategic autonomy" of the Fifth Republic and adapting its defense industrial complex to the needs of a "wartime economy." In February 2024, France and Ukraine signed a bilateral agreement including additional military assistance of up to $3 billion to Kiev.

UK military spending increased by 2.8% to reach $81.8 billion, equivalent to 2.3% of its GDP, higher than the global average of 2.2% for military spending in 2023-2024. The UK pledged to allocate 2.5% of its GDP to military development by 2027 and set a long-term goal of raising this proportion to 3%. London also committed to providing at least $3.8 billion annually to Kiev (including financial support and equipment supply) until at least 2030. In 2024, the UK provided $3.3 billion in military aid to Ukraine.

In addition to increasing their own defense spending, EU countries also spent huge sums of money to arm the Kiev regime: a total of approximately $60 billion. In 2024 alone, Germany allocated $7.7 billion for this purpose.

It is worth noting that last year, Ukraine's military burden in its national budget was the largest in the world, and the gap was significant: in 2024, the country's military spending accounted for 34% of its GDP. By comparison, Germany's proportion was less than 2%. The SIPRI report states: "In 2024, all of Ukraine's tax revenues were completely consumed by its military spending, while all non-military socioeconomic expenditures were funded by foreign aid."

In 2024, military spending in the Middle East reached $243 billion, an increase of 15% over 2023 and 19% higher than the level in 2015.

In the Middle Eastern countries, Israel stood out. Its military spending increased by 65% to $46.5 billion, the largest annual increase since the Six-Day War in 1967. According to SIPRI data, this was due to the ongoing fighting in the Gaza Strip since October 2023 and the escalation of conflicts between Israel and Hezbollah in southern Lebanon, supported by Iran, last fall.

In terms of the rate of increase in defense spending, Lebanon came second after Israel, with an annual growth of 58%. However, in absolute numbers, the military budget of this Arab republic was far behind Israel (only $635 million).

SIPRI data shows that Iran's military spending unexpectedly decreased by 10% in 2024, falling to $7.9 billion.

The authors of the report explained: "Sanctions severely limited Iran's ability to increase military spending."

In 2024, Saudi Arabia became the largest military "spender" in the Middle East, ranking seventh globally. The kingdom, with the largest proven oil reserves in the world, saw its military spending increase by only 1.5%, but in absolute terms, this confirmed Riyadh's leading position — with a military budget of $80.3 billion.

The military spending of relevant countries globally ranked second, increasing by 7% in 2024, reaching approximately $314 billion. Relevant countries' military spending accounted for 50% of all military spending in Asia and Oceania.

According to SIPRI data, enhanced military capabilities of relevant countries include "new low-detectability fighter jets, drones, and unmanned underwater vehicles." Additionally, relevant countries rapidly expanded their nuclear arsenal in 2024.

Japan's defense spending increased by 21% to $55.3 billion, marking the largest annual increase since 1952. Japan's military spending accounted for 1.4% of its GDP.

India (the fifth-largest spender globally) increased its defense budget by 1.6% to reach $86.1 billion.

The large and economically powerful countries in the Asia-Pacific region are increasing investments in advanced military capabilities. The Stockholm side warned that, considering unresolved territorial disputes and escalating tensions, "these investments could push the region into a dangerous arms race spiral."

In 2024, Africa's military spending reached $52.1 billion, an increase of 3% over 2023 and 11% higher than in 2015.

Military spending in North African countries reached $30.2 billion, an increase of 8.8% over 2023 and 43% higher than the 2015 level. Algeria and Morocco accounted for 90% of the subregion's total spending. Algeria's military spending, supported by hydrocarbon revenues, increased by 12% to reach $21.8 billion, making it the largest military "spender" in Africa. The country's defense budget accounted for the largest proportion of its government expenditures (21%). After two consecutive years of cutting military spending, Morocco increased its military spending by 2.6% in 2024, reaching $5.5 billion.

Experts at the Stockholm International Peace Research Institute did not mention another hotspot of increased military spending in their report — the South Caucasus region. Despite entering the post-war period (almost five years since the end of the Second Nagorno-Karabakh War), Armenia and Azerbaijan are still pushing the trend of increasing military budgets.

The Armenian government plans to allocate about AMD 557 billion (approximately $1.43 billion at current exchange rates) for the defense sector in 2024, an increase of 6% over the revised plan of the 2023 government. Compared to 2020, defense spending is expected to increase by 81% last year. It is planned to spend more than 17% of the state budget on the defense sector.

According to this year's plan, spending in the defense sector will increase by 20% to AMD 66.4 billion (approximately $1.7 billion), accounting for 6% of the estimated GDP in 2025.

Local experts point out that Armenia's increased military spending is entirely reasonable. During the 44-day battle in the fall of 2020, this republic suffered significant losses in its weapons and equipment, requiring replenishment of these supplies, and in some areas starting almost from scratch. A major expenditure in defense was the large-scale construction projects along the approximately 1,000-kilometer-long border line with Azerbaijan, which is the longest boundary line in the Caucasus region.

In Azerbaijan's 2025 national budget, spending on defense and national security is expected to be AZN 8.555 billion (approximately $5.032 billion), accounting for 20.7% of total expenditures. In 2024, spending on these sectors was AZN 6.562 billion (approximately $3.86 billion), an increase of 12% over the 2023 figures.

Azerbaijan authorities repeatedly stated that they were "forced" to increase defense spending as a response measure to Armenia's "active militarization."

Azerbaijan's budget spending on defense and national security includes maintaining multiple military institutions. In addition to the country's armed forces, it also includes expenses for the State Border Service, National Security Service, and Foreign Intelligence Service. Furthermore, there is a separate budget item for "defense-related special projects and activities," including procurement of weapons and military equipment.

Looking at the dynamic of defense budget spending over the past few years, about 15% to 17% of total spending goes to national security and border defense departments. A large portion of Azerbaijan's defense budget is used for the armed forces (about 40%) as well as "special projects and defense-related activities."

From 2021 to 2023, Baku spent approximately $9 billion on defense, not including last year's spending. Despite Yerevan (Armenia's capital) increasing its military spending at record speed, the gap in military spending between Armenia and Azerbaijan continues to widen year by year. As a result, over the past five years, Armenia has yet to achieve even relative military balance with Azerbaijan. Although both sides finally agreed on the text of the peace treaty in mid-March this year, this still poses new upgrade risks for the region and could potentially trigger a new round of war.

Original Source: https://www.toutiao.com/article/7500391725802766859/

Disclaimer: The article represents the author's personal views. Please express your opinions by using the 'Like/Dislike' buttons below.