Global military spending increased by 2.9% in 2025, reaching approximately $2.89 trillion, according to a Monday report from the Stockholm International Peace Research Institute (SIPRI). The rise marks the 11th consecutive year of growth and pushes global defense spending to about 2.5% of worldwide gross domestic product, the highest level since 2009.

The report found that the overall increase occurred despite a 7.5% decline in military spending by the United States. U.S. defense outlays fell to $954 billion in 2025, a drop SIPRI attributed largely to the absence of new congressional funding for military assistance to Ukraine during the year. In previous years, U.S. aid to Ukraine totaled roughly $127 billion.

SIPRI noted that the United States remains the world’s largest defense spender but said the 2025 decline is likely temporary. It pointed to projected increases in future U.S. defense budgets, with spending already approved for 2026 reportedly exceeding $1 trillion and potential further increases in subsequent years.

The report identified the United States, China, and Russia as the top three military spenders, collectively accounting for about $1.48 trillion, or just over half of global expenditures.

A significant driver of the global increase came from Europe, where military spending rose 14% to $864 billion amid continued conflict in Ukraine and broader security concerns. Spending in both Russia and Ukraine continued to increase in the fourth year of their war, while NATO members in Central and Western Europe recorded their sharpest annual rise since the end of the Cold War.

In the Middle East, defense spending trends were mixed. Israel reduced its military spending by 4.9% to $48.3 billion as the Gaza conflict eased in 2025, while Iran saw a 5.6% decline, bringing its defense budget to $7.4 billion for the year.