Global defence spending rises 2.9% to $2.88 trillion despite US cutbacks: SIPRI report

Global military expenditure increased by 2.9 percent in 2025, reaching a record $2,887 billion despite a decline in US defence spending following President Donald Trump’s decision to halt new military aid for Ukraine.

According to data released by the Stockholm International Peace Research Institute (SIPRI), this marks the 11th consecutive year of growth in global defence spending.

The report states that military expenditure now accounts for 2.5 percent of global GDP, the highest level since 2009.

Analysts say ongoing global conflicts and long-term defence planning by several countries are expected to sustain this upward trend beyond 2026.

The United States, China, and Russia remain the top three defence spenders, together accounting for $1,471 billion—around 51 percent of total global military expenditure.

US defence spending fell to $954 billion in 2025, largely due to the suspension of new Ukraine aid packages. Over the past three years, Washington had provided $127 billion in military assistance to Ukraine.

However, the report notes that the decline may be temporary, as the US Congress has already approved a defence budget exceeding $1 trillion for 2026, with projections suggesting it could rise to $1.5 trillion by 2027.

A significant regional driver of the increase was Europe, where defence spending rose by 14 percent to $864 billion.

In contrast, Israel’s military expenditure declined by 4.9 percent to $48.3 billion following the end of the Gaza conflict in 2025, while Iran’s spending also dropped for a second consecutive year, falling 5.6 percent to $7.4 billion.