Global Military Spending Surge: Germany's Defense Budget Rises by 28%
The global landscape of military expenditures is experiencing a significant increase, with Germany emerging as a key player. According to the latest report from the Stockholm International Peace Research Institute (SIPRI), military spending worldwide reached approximately $2.72 trillion in 2024, marking a 9.4% rise from the previous year, the most substantial annual increase since the end of the Cold War in 1991.
This upward trend in military budgets has been particularly pronounced in Europe and the Middle East, driven by ongoing conflicts, including the war in Ukraine and heightened tensions in Gaza and Lebanon. SIPRI researcher Xiao Liang noted that more than 100 countries raised their military spending in 2024.
Germany's military expenditures soared to $88.5 billion, equating to about EUR77.6 billion. This figure positions Germany as the country with the highest military spending in Western Europe for the first time since reunification. The nation now ranks fourth globally, following the United States, China, and Russia.
The 28% increase in Germany's military budget compared to the previous year can be attributed to the special fund established for the Bundeswehr in 2022. However, with expenditures representing 1.9% of its Gross Domestic Product (GDP), Germany remains just shy of NATO's target of 2%.
In response to the rising military budgets, critics, including representatives from Greenpeace, have expressed concerns about the prioritization of defense spending over critical areas such as education, climate protection, and social security. These critics argue that escalating military expenditures could lead to a renewed arms race and increased distrust among nations.
According to SIPRI, all European nations, with the exception of Malta, increased their defense budgets in 2024. Russia, for instance, allocated $149 billion for military purposes, constituting approximately 7.1% of its GDP. The report indicates that Ukraine spent $64.7 billion on defense, which represented 34% of its GDP, reflecting its ongoing struggle against Russian aggression.
The United States continues to lead global military spending, accounting for 37% of total expenditures with a budget of $997 billion. This budget is significantly directed towards modernizing military capabilities and enhancing the U.S. nuclear arsenal. Meanwhile, China's military spending rose by 7%, marking three decades of continuous growth, with approximately $314 billion allocated for various defense initiatives.
In the context of NATO, 18 out of 32 member states met the alliance's target of spending at least 2% of their GDP on defense in 2024, up from 11 the previous year. SIPRI researchers have linked this increase to ongoing security threats, particularly from Russia, and the potential for a reduced U.S. military presence in Europe.
In the Middle East, while overall military spending increased, only Israel and Lebanon reported significant hikes. Israel's military budget surged by 65%, the highest increase since the Six-Day War in 1967, reaching $46.5 billion. This rise is attributed to the ongoing conflict in Gaza and escalating tensions with Hezbollah.
In contrast, Iran experienced a decrease in military spending, dropping by 10% to $7.9 billion, influenced by international sanctions despite its support for regional groups like Hamas and Hezbollah.