Military Spending Hits Record High in 2024 SIPRI report

SIPRI report: Rapid increase in military spending

Military spending rose sharply worldwide in 2024. According to the peace research institute SIPRI, countries invested more than $2.7 trillion, 9.4 percent more than the previous year—and the trend is rising.

The state of the world: uncertain, dangerous, tense. There haven’t been so many conflicts since the end of World War II, and many countries are rearming.

This is also reflected in the latest SIPRI figures: The Stockholm-based peace researchers have calculated global defense spending and discovered a new record. States spent 2.718 trillion US dollars (approximately 2.4 trillion euros) last year, according to Diego Lopes da Silva of SIPRI.

Highest increase since the Cold War

This is the largest increase since the end of the Cold War, according to Lopes da Silva. “Military spending has been rising for years, especially since the war in Ukraine. But the current jump is by far the largest and reflects the deteriorating security situation worldwide.”

German special fund shows effect

Germany moves up from 7th to 4th place in the global ranking of countries. Only the USA, China, and Russia have higher spending, according to SIPRI estimates. This is due to the special fund for the Bundeswehr amounting to 100 billion euros.

This money will be used to bring Germany up to date militarily, explains Lopes da Silva. “After the end of the Cold War, defense spending was scaled back. But now it is believed that military capabilities are no longer sufficient in view of possible threats from Russia, for example.”

Almost all European countries are arming

In Western and Central Europe, Germany now leads the way in military spending. However, many other European countries are also increasing their military spending, reports SIRPI. After the war in Ukraine began, this was primarily done by countries geographically close to Russia. This trend is now evident in all European countries—with the exception of Malta.

“It’s interesting that Russia increased its military spending again in 2024—by over 30 percent. Ukraine, on the other hand, was only able to increase its spending by two percent,” says the peace researcher. “That’s a significant difference.”

Impact on other sectors

Around 100 countries worldwide increased their defense spending last year. This money ultimately means less money for other areas. The SIPRI peace researcher says the increased military spending will have an impact: “The UK, for example, is cutting development aid in favor of defense. Other countries are printing more money, which can affect inflation. The consequences will be diverse and extend beyond the military sphere.”

A reversal of this trend is not foreseeable, the SIPRI report states. Many states have already announced further increases in their military spending.

“Global military spending rises for the tenth year in a row” – Ukraine war and Middle East conflict driving growth

According to a survey, global military spending has increased for the tenth time in a row.

Last year, all countries invested the equivalent of approximately €2.38 trillion in their armed forces, according to the Stockholm Peace Research Institute (SIPRI) in its latest report. Adjusted for inflation, this was 9.4 percent more than in 2023, making it the largest year-on-year increase since the end of the Cold War. The increase was particularly strong in Europe and the Middle East.

The reasons cited were the wars in Ukraine and the Gaza Strip, as well as the conflict between the Israeli military and the militant Islamist Hezbollah. According to Sipri, Germany ranked fourth in global defense spending in 2024 – behind the USA, China and Russia.

To USA, China and Russia: Germany ranks fourth in global defense spending

The wars in Ukraine and Gaza are taking their toll: military spending is growing at its fastest pace since the end of the Cold War. For the first time, Germany has moved into fourth place in the global rankings, behind the USA, China, and Russia.

Global military spending increased for the tenth consecutive year in 2024. All countries combined spent around 2.72 trillion US dollars (approximately 2.38 trillion euros) on their military, according to the Stockholm Peace Research Institute (SIPRI) in its new report. Adjusted for inflation, this was 9.4 percent more than in 2023 – the largest year-on-year increase since the end of the Cold War. According to the institute, the increase was particularly strong in Europe and the Middle East, which could be attributed to the wars in Ukraine and the Gaza Strip, as well as the conflict between Israel and Hezbollah in Lebanon.

According to SIPRI, Germany spent 88.5 billion US dollars (77.6 billion euros) on its military in 2024—28 percent more than the previous year—and thus ranked ahead of all other Central and Western European countries for the first time since reunification. Globally, the Federal Republic ranked fourth, behind the leading country, the USA, with China and Russia in second and third place, respectively.

The SIPRI report shows that all European countries—with the exception of Malta—increased their military spending in 2024. Russia, with $149 billion (almost €131 billion), was by far the European country that spent the most on its military. Ukraine, which was attacked by Russia, spent $64.7 billion (approximately €56.7 billion). At 34 percent, Ukraine was the country worldwide that spent the largest share of its gross domestic product on its military apparatus.

USA accounted for more than a third of military spending

According to the report, the United States, the undisputed leader in military spending for years, accounted for 37 percent of global military spending at $997 billion (€874 billion). China, in second place on the list, increased its spending by seven percent to $314 billion (approximately €275 billion), marking three decades of uninterrupted growth in its military spending.

According to SIPRI, military spending in the Middle East increased overall, but only Israel and Lebanon recorded a significant increase. Israel’s spending rose by 65 percent, the largest increase since the Six-Day War in 1967, to $46.5 billion (just over €40 billion).

Conclusion

The annual SIPRI report on military spending around the world is considered the most comprehensive collection of data of its kind. Peace researchers also include expenditures on personnel, military aid, and German military research and development.

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Sources used:

• With material from the News agencies  dpa and AFP, ntv.de, Reuters news agency, BBC News and CNN reports. The content has been independently analyzed and rewritten to provide original insights.

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