Global military spending hit a record $2.9 trillion in 2025, marking the 11th straight year of growth, according to the Stockholm International Peace Research Institute.

Europe drove much of the increase with a 14% surge, while countries in Asia and Oceania also significantly boosted defense budgets, led by China’s continued expansion.

Spending by Russia and Ukraine remained extremely high as their war continued, with Ukraine dedicating a particularly large share of its economy to defense.

In contrast, the United States saw a 7.5% drop in military spending due to a lack of new aid packages for Ukraine, though this decline is expected to be temporary, Defense News has reported.

Researchers also warned that rising NATO spending targets and vague definitions of defense expenditures could reduce transparency and encourage accounting loopholes.