Global defense spending has reached a record high in 2024, increasing by 9.4% to total .718 trillion. This marks the largest rise in defense expenditure since the Cold War. Europe, particularly, has emerged as a key player in the growth, although NATO countries are still far from their target of spending 5% of their GDP on defense. Despite this, the steady rise in military budgets is evident, with more than 100 countries boosting their military spending in 2024. SIPRI’s report emphasizes that while the war in Ukraine is a key driver of the increase, it reflects broader global trends involving rising tensions, such as those between China and Taiwan and ongoing conflicts in Gaza and Africa.

The most substantial growth in defense spending is observed in Europe, where countries have collectively raised their budgets by 17%, amounting to 3 billion. Notably, Poland has increased its defense spending by 31%, while Eastern Europe as a whole saw a 24% rise, marking the highest expenditure since the Soviet Union's collapse in 1991. However, European NATO members remain far from meeting the 5% GDP goal, requiring a massive increase of 146% over their current budgets to meet the target.

In addition, the United States and China remain the largest contributors to global defense spending, accounting for almost half of the world’s total expenditure. Russia's defense budget, heavily impacted by the ongoing war in Ukraine, surged by 38% to 9 billion, making it the third-largest spender. Russia's defense spending now represents 7.1% of its GDP. Ukraine, ranked eighth globally, allocated a significant portion of its GDP to defense, receiving approximately billion in foreign military aid, primarily from the U.S., Germany, and other Western countries. Together, Ukraine’s own spending and military aid total around 5 billion, positioning it just behind Russia in global rankings.

Countries in Asia and Oceania, particularly in response to the rising tensions with China, have also increased their military budgets by 6.3%, totaling 9 billion. This growth is the largest in the region since 2009, driven by fears of escalating conflict in the Taiwan Strait.

As the geopolitical landscape continues to shift, military spending is set to remain a top priority for many nations, leading to significant economic and social trade-offs that could have lasting consequences for global security and economic stability.