World military expenditure reached a record $2.72 trillion (£2.38 trillion) in 2024, marking a 9.4 per cent increase from the previous year, according to new data released by the Stockholm International Peace Research Institute (SIPRI) on 27 April. The rise is the sharpest annual increase recorded since the end of the Cold War.
More than 100 countries raised their military budgets over the past year, SIPRI reported, warning that a growing prioritisation of defence spending could have significant long-term consequences for global economic and social stability.
“Governments increasingly prioritising military security, often at the expense of other budget areas, could lead to significant effects on societies for years to come,” SIPRI said.
Surge in European and Middle Eastern Military Budgets
Military spending rose across all global regions, with particularly rapid growth in Europe and the Middle East. European defence expenditure, including Russia, increased by 17 per cent in 2024, surpassing Cold War-era levels for the first time.
The war in Ukraine and uncertainty over the United States’ future commitment to NATO were cited as major drivers behind the European surge.
German Defence Minister Rejects Trump Peace Proposal
On the same day the SIPRI report was published, German Defence Minister Boris Pistorius urged Ukraine to reject US President Donald Trump’s proposed ceasefire deal, which would involve ceding significant territory to Russia.
Speaking to German public broadcaster ARD, Pistorius acknowledged that Ukraine may eventually need to compromise in order to reach a lasting ceasefire. However, he warned that accepting Trump’s latest offer would amount to a “capitulation.”
“Ukraine on its own could have got a year ago what was included in that [Trump] proposal,” he said. “I cannot discern any added value.”
Pistorius, who is expected to retain his post under Germany’s new coalition government, stressed that Kyiv should not be pressured into accepting terms that undermine its sovereignty.
Russia and Ukraine Military Spending Comparison
Russia’s military expenditure rose sharply to an estimated $149 billion (£130.6 billion) in 2024, a 38 per cent increase compared to 2023 and double its 2015 spending levels. Military expenditure now accounts for 7.1 per cent of Russia’s GDP and 19 per cent of its total government spending.
Ukraine’s defence spending also increased, albeit at a slower rate. Expenditure rose by 2.9 per cent to $64.7 billion (£56.7 billion), representing 43 per cent of Russia’s total spend. However, Ukraine’s military burden remains far higher in relative terms, equating to 34 per cent of the country’s GDP, the largest share globally.
“Ukraine currently allocates all of its tax revenues to its military,” SIPRI noted. “In such a tight fiscal space, it will be challenging for Ukraine to keep increasing its military spending.”
United States Maintains Dominant Position
The United States remains the world’s largest military spender. In 2024, the US increased its defence budget by 5.7 per cent to $997 billion (£874.1 billion), accounting for 66 per cent of NATO’s total spending and 37 per cent of all global military expenditure.
SIPRI’s findings underline a significant shift in global priorities, with defence once again dominating national budgets as geopolitical tensions continue to escalate.
