What America REALLY spends on defense, how it compares

The nations spending the most on defense

Global military spending skyrocketed to an unprecedented $2.718 trillion in 2024, marking a substantial 9.4% real-term increase from 2023. Incredibly, this is the sharpest annual rise since at least the end of the Cold War.

With the world in the grip of an expensive and dangerous new arms race, click or scroll through the gallery and join us as we reveal the 25 top defense spenders, as identified by the Stockholm International Peace Research Institute (SIPRI), and where the money is going.

What is driving record military spending?

Defense budgets swelled in over 100 countries in 2024, with the most striking growth in Europe and the Middle East. Propelled by the war in Ukraine and the ongoing Russian threat, European nations upped their military spending by 17% overall. All NATO countries increased their budgets, with 18 of the 32 members now spending the 2% of GDP target or above.

The Middle East's outlay soared by 15%, mostly fuelled by Israel's conflicts. China's military build-up continued apace, prompting its neighbours to hike their expenditure too, not to mention the US, which is going all out to maintain its position as the world's foremost military power.

Now on to the top 25 biggest spenders...

25. Singapore, annual spend: $15.06 billion

A staunch US ally that also enjoys cordial relations with China, Singapore gets along swimmingly with pretty much every nation, a peaceful standing it helps safeguard by maintaining a robust military. As former Defense Minister Ng Eng Hen puts it: “Strong fences make good neighbours.”

Last year, the city-state's outlay increased by 3% to represent 2.8% of its GDP. And with global tensions on the rise, Singapore has hiked its FY2025 defense budget by 12.4%. Major acquisitions include American F-35 fighter jets and German-made Invincible-class submarines.

24. Colombia, annual spend: $15.1 billion

Colombia's military spending is largely focused on internal security rather than external threats. The Latin American nation grapples with persistent challenges from insurgency groups like the National Liberation Army (ELN), along with criminal networks tied to the illegal drug trade, among other homegrown threats.

Last year, the nation's expenditure grew by 14%, increasing to 3.4% of its GDP. The sharp rise came as the government stepped up military action in parts of the country after rebel groups pulled out of peace talks.

23. Taiwan, annual spend: $16.48 billion

In 2024, Taiwan's defense budget grew by 1.8% and was up 48% from 2015. The island nation continues to bolster its defenses amid heightened tensions with China. Its strategy involves both acquiring US arms and advancing domestic systems. Last year, new Taiwanese-made unmanned aerial vehicles (UAVs) and anti-drone systems were showcased, while roughly 18% of the budget went towards procuring US naval equipment and F-16 fighter jet upgrades.

Still, at 2.1%, Taiwan's outlay as a percentage of GDP is surprisingly modest given the ever-present risk of a Chinese invasion. Experts attribute this to a variety of reasons, from political infighting over budgets to delivery delays of US weapons.

22. Mexico, annual spend: $16.73 billion

The Mexican government ramped up military spending by 39% last year. While this is the third-largest relative increase globally, the total spend equates to just 0.9% of the country's GDP. As is the case with Colombia, Mexico's military budget is primarily used for domestic security.

Last year's increase was down to a boost in funding for the National Guard and the Navy, which are now tackling organized crime, including Mexico's infamous drug cartels. Looking forward, President Sheinbaum's government appears more open to foreign engagement than the previous administration, which may translate to even bigger military spending over the next few years.

21. Brazil, annual spend: $20.95 billion

Bucking the global trend, Brazil reduced its defense spending by 0.4% in 2024. It was the only country in the top 25 to cut back on its budget, with the figure representing just 1% of GDP.

Interestingly, the left-leaning Lula government has actually increased investment despite the limited budget by slashing personnel costs, freeing up more money for social projects without compromising Brazil's military capabilities.

20. Algeria, annual spend: $21.81 billion

Algeria is Africa's biggest military spender by a large margin. The nation accounted for 42% of the continent's total defense expenditure last year, with the figure of $21.81 billion up 12% from 2023.

Amounting to a large 8% of the country's GDP, this ample outlay comes as the Algerian government faces "unprecedented regional threats" from conflicts in Mali, Libya, and other neighboring countries, coupled with escalating tensions with Morocco.

19. Netherlands, annual spend: $23.18 billion

NATO countries accounted for 55% of global military spending last year. As we've mentioned, 18 members have met the 2% of GDP expenditure threshold set in 2014, up from 11 in 2023. The Netherlands isn't among them yet, but it's almost there.

Last year, the Dutch government increased the defense budget by 35%, boosting the outlay to 1.9% of GDP, up from 1.5% in 2023. The country is likely to meet the target this year. And NATO members are now working towards a more ambitious 5% by 2032 to address threats from Russia, China, and elsewhere.

18. Spain, annual spend: $24.62 billion

The slackest NATO member in terms of spending, Spain's military expenditure is the lowest in the alliance in relative terms, at just 1.4% of GDP. The 2024 defense budget was a mere 0.4% increase from the previous year. But Prime Minister Sánchez has vowed to meet the 2% of GDP benchmark in 2025, well ahead of the previous government-set deadline of 2029.

An additional $12.04 billion will be spent this year, with the emphasis on expanding personnel numbers and investing in military hardware, cybersecurity, and telecoms. However, the country has agreed a deal with NATO that will see it opt out of the alliance's 5% of GDP target.

Liking this? Click the Like button above. And click the Follow button above for more great stories from loveMONEY

17. Türkiye, annual spend: $24.98 billion

Fellow NATO member Türkiye has also boosted its military spending in an effort to meet the 2% of GDP target. According to SIPRI, the nation's defense budget increased by 12% last year, climbing to 1.9% of GDP, up from 1.5% in 2023.

That said, NATO, which uses different methodology or criteria to calculate military expenditure, recently reported that Türkiye did actually meet the threshold in 2024, exceeding it by 0.09%. Pictured is a massive naval exercise that Turkish forces carried out last year off the coast of Marmaris.

16. Canada, annual spend: $29.35 billion

Canada's military expenditure increased by a considerable 6.8% in 2024, but the outlay as a share of GDP remained unchanged from 2023 at 1.3%.

Under pressure from NATO and with President Trump eyeing Canada as the 51st state, Prime Minister Mark Carney aims to increase the defense budget significantly over the next few years, which would comfortably surpass the 2% of GDP threshold. Carney has cited “American threats” to Canada's sovereignty as a key reason for the hike. The extra money will go towards acquiring submarines, icebreakers, and other hardware that can be used in Canada's far north, sourced from countries other than the now seemingly hostile US.

15. Australia, annual spend: $33.82 billion

With China becoming ever more belligerent, Australia is among the countries in the Asia-Pacific region upping its defense spending in a major way. Last year, the nation's outlay increased by 1.9%, representing, coincidentally, 1.9% of its GDP, the same proportion as the previous year.

Expenditure is set to rise markedly in the coming years. For 2025 to 2026, the Albanese government is bringing forward $646 million in defense investments and plans to pump $37.25 billion into the Australian Defense Forces (ADF) over the next decade.

14. Italy, annual spend: $37.96 billion

Italy increased its budget by only 1.4% last year, although any increase is arguably better than none; in 2023, the country's military outlay dropped by a significant 5.9%.

Despite the 1.4% rise, the spend in terms of GDP remained at 1.6%. Yet President Meloni announced in April that Italy would reach the 2% of GDP NATO threshold this year, just in time for her White House meeting with President Trump. How the government will achieve this is still unknown, but Meloni is seeking to reclassify spending on the Coast Guard and other services under the defense budget, a shrewd accounting maneuver that would help do the trick without spending a euro.

13. Poland, annual spend: $38 billion

With an aggressive Russia on its doorstep, Poland is bolstering its defenses with a colossal increase in military spending. Last year, the budget increased by 31% to represent 4.2% of GDP, more than any other NATO member and the heaviest burden in Central and Western Europe.

The Polish military has been busily stocking up on state-of-the-art missile defense systems, fighter jets, tanks, and more from the US and South Korea, with the shopping spree only growing in scale. President Duda has pledged to devote as much as 4.7% of the nation's GDP to defense in 2025.

12. Israel, annual spend: $46.51 billion

Israel's military spending leapt by 65% in 2024, the biggest year-on-year increase since the Six-Day War in 1967. The figure as a share of GDP inflated to 8.8%, giving Israel the world's second-highest military burden. These numbers are hardly surprising.

With the relentless war in Gaza, the intense October escalation with Hezbollah in Lebanon, and the volatile new front opened by Yemen's Houthi rebels all on its plate, Israel has been engaged in multiple conflicts that are working out to be extraordinarily expensive, on top of the devastating human cost on all sides. The country's war with Iran will only add to the elevated spending.

11. South Korea, annual spend: $47.58 billion

South Korea's number one defense priority is containing the persistent and evolving threat posed by its communist arch-enemy to the north. Last year, the country continued to buttress its defenses against North Korea with pre-emptive strike systems such as ballistic missiles and F-35 fighters.

The military budget increased by just 1.4%. However, the figure of $47.58 billion is up 30% since 2015, and South Korea now carries the heaviest military burden in East Asia at 2.6% of GDP.

10. Japan, annual spend: $55.28 billion

Last year, Japan's defense budget shot up by 21%, the biggest annual increase since 1952. Military spending grew to 1.4% of GDP; again, this number hasn't been seen since the 1950s.

This surge reflects a strategic shift to counter growing threats from China, North Korea, and other adversaries. Marking a departure from its pacifist constitution, Japan is reinterpreting its 'self-defense' posture. The nation set about rearming in 2022 with its biggest military build-up since the Second World War. A total of $320 billion is being spent over five years, with the focus on long-range strike capabilities and air defense systems.

9. France, annual spend: $64.68 billion

Like its fellow NATO members in Europe, France's major international security concern is containing Russia's aggression.

The nation's defense expenditure surpassed the 2% of GDP NATO benchmark in 2023 and the outlay rose by 6.1% in 2024 to ensure it remained above the threshold. The increased spend is in keeping with France's Law on Military Planning 2024-2030, which aims to boost its defense self-sufficiency and domestic arms industry. This seems a very wise move now given the recent doubts about America's future commitment to the transatlantic alliance.

8. Ukraine, annual spend: $64.71 billion

Russia's invasion has been tremendously costly for Ukraine, both in terms of lives lost and money spent. Last year, the war-torn nation devoted a jaw-dropping 34.5% of its GDP to defense, the largest military burden of any country by a huge margin.

Ukraine's outlay as a percentage of GDP dropped from 37%, but the actual outlay increased by 2.9%. In any case, the embattled country received at least $60 billion in foreign military aid in 2024, which isn't included in the SIPRI total. If it were, Ukraine would rank as the world's fourth-biggest defense spender.

7. Saudi Arabia, annual spend: $80.33 billion

Saudi Arabia has long been the Middle East's leading military spender, and last year was no different. But while the nation's defense budget equates to a formidable 7.3% of its GDP, the allocation increased by just 1.5% in 2024 and is still 20% lower than in 2015 when Saudi Arabia was flush with bumper oil revenues.

The country is poised to increase its spend significantly this year and recently agreed an arms deal with the US worth $142 billion, which the Trump administration has billed as the largest of its kind in history.

6. UK, annual spend: $81.76 billion

The UK is among the 18 NATO members that have met the alliance's 2% of GDP military spending threshold. Last year, the country's defense budget increased by 2.8%, representing 2.3% of GDP, a level sustained from 2023 and an increase from 2.2% in 2022.

With the world becoming more perilous and American support no longer guaranteed, Prime Minister Starmer recently announced the country's biggest sustained increase in military spending since the Cold War. The government has pledged to raise the defense budget to 2.5% of GDP by April 2027 and 3% in the next parliament. Following pressure from its NATO allies, it's now pledging to spend 5% of GDP by 2035 and is set to buy 12 F-35 stealth jets capable of carrying nuclear warheads.

5. India, annual spend: $86.13 billion

India's military spending increased by a modest 1.6% in 2024, but the figure is up 42% from 2015. Last year's number equates to 2.3% of the country's GDP.

The nation's outlay has been hiked up for the 2026 fiscal year. India is dealing with a variety of growing military challenges, from China encroaching along its border to extremist groups in its northern regions, with a recent terrorist attack in Jammu and Kashmir sparking a short-lived military conflict with its long-time adversary, Pakistan.

4. Germany, annual spend: $88.46 billion

Like Japan, Germany is moving away from its postwar pacifist ethos in the face of mounting threats from Russia, China, and other adversaries, and an America less willing to step up for its European allies. Last year, the country's defense budget increased by 28%. As per SIPRI, the spend represented 1.9% of GDP, but the German government says it met the 2% NATO target in 2024.

Crucially, Germany's parliament voted earlier this year for an enormous increase in military spending, signaling the nation's commitment to rearming and taking a more active role in Europe's security. It now intends to boost its defense spending at a faster rate than both the UK and France, aiming for 3.5% of GDP in 2029.

3. Russia, annual spend: $149 billion

Russia's invasion of Ukraine is proving astronomically expensive both for the victim and the aggressor. Last year, the Kremlin spent an estimated $149 billion on its military, a 38% increase from 2023 and double the total outlay a decade prior. The expenditure equated to 7.1% of its GDP and 19% of total government spending. But the actual outlay could be much higher.

As SIPRI has noted, Russian state spending has become shrouded in secrecy, and much of the war's true cost is likely concealed.

2. China, annual spend: $313.66 billion

China's military spending jumped by 7% in 2024, the 30th consecutive year of growth, with the outlay equating to 1.7% of GDP, a figure that remained unchanged from 2023.

China is in the process of upgrading its military and has been showcasing an array of futuristic weaponry of late, from a terrifying new hydrogen bomb to a gigantic drone mothership that can launch a swarm of 100 kamikaze UAVs in seconds. It's important to point out that China's spend is much higher in purchasing power terms, coming in at $567 billion in 2024 by one estimate. Plus, according to The Economist, precise defense spending data is murky for China, so the true figure could be higher still and much closer to America's expenditure in relative terms.

1. USA, annual spend: $997.3 billion

The world's leading military power increased its defense spending by 5.7% last year, sustaining the figure at a generous 3.4% of GDP and making up 37% of the total global outlay.

President Trump's focus may be on protecting the US rather than acting as the planet's policeman, but he is seeking to boost the Pentagon budget, proposing a $1.01 trillion package for the 2026 fiscal year. The POTUS' future plans include a Golden Dome missile shield defense system to cover the entire country that could cost as much as $542 billion.

Now discover the countries that own the most gold, ranked

Liked this? Click the Like button above. And click the Follow button above for more great stories from loveMONEY​