Stockholm, Sweden – Global military expenditure reached an unprecedented $2.44 trillion in 2023, marking the ninth consecutive year of increases and the steepest annual rise since 2009. Data released Monday by the Stockholm International Peace Research Institute (SIPRI) reveals that this surge, a 6.8% real-term increase from 2022, is driven primarily by escalating geopolitical instability across the globe, including the war in Ukraine and heightened tensions in Asia and the Middle East. For the first time, SIPRI noted that military spending rose in all five geographical regions it monitors.
The United States remained the world’s largest spender, allocating an estimated $916 billion, an increase of 2.3% and accounting for 37% of the global total. However, the most significant proportional increase came from key regional players.
Drivers of the Expenditure Spike
The increase transcends predictable conflicts, reflecting a broader shift towards perceived threat environments. Russia, now the third-largest spender after the US and China, increased its military budget by 24%, reaching an estimated $109 billion. This figure represents 5.9% of its Gross Domestic Product (GDP), underscoring the deep commitment to its war effort against Ukraine.
“Countries are trading what they perceived as either peace dividends or necessities in areas like education and healthcare for increased military budgets,” stated Dr. Nan Tian, Senior Researcher at SIPRI. “This trend suggests that nations are prioritizing hard power in a deteriorating security landscape.”
China, the second-largest spender, continued its long-term modernisation drive, allocating an estimated $296 billion, a rise of 6.0%. This sustained investment is seen as a crucial element of its rapidly increasing military power projection in the Indo-Pacific.
Europe witnessed substantial growth, particularly among countries bordering Russia. Poland boosted its spending by 75%—the largest single percentage increase of any country—to $31.6 billion. The aggregate European spending increase of 16% highlights the regional response to the prolonged conflict in Eastern Europe.
Middle East and Asian Hotspots
The conflict in the Middle East significantly influenced expenditure patterns. Israel, the 15th largest spender globally, elevated its budget by 24% to $27.5 billion, mainly due to the intensive military operation in Gaza. The analysis noted that while comprehensive data from regional neighbours remains challenging to verify immediately, the overall trend points toward intensified regional rearmament.
In Asia, besides China, countries like India continued to bolster their defense capabilities, allocating $83.6 billion, a 4.2% increase, driven by strategic competition with neighbours. Japan also increased its budget, reflecting concerns over regional stability.
The Economic Burden of Rearmament
The global military burden, measured as the global average of military expenditure versus GDP, reached its highest level since 2019, settling at 2.3%. The spending increase is not merely a reaction to current crises but suggests a long-term strategic pivot.
“The unprecedented level of spending is a stark indicator that nations feel less secure today than they did a decade ago,” added Dr. Tian. “While some defense increases are clearly tied to procurement and modernization, the sheer breadth of this spending across all continents signals a profound and possibly destabilizing shift towards arms races, diverting massive resources away from climate change mitigation and poverty reduction.”
This nine-year trend establishes a new global baseline for military preparedness, signaling that defense budgets are likely to remain elevated as geopolitical tensions continue to reshape international relations in the coming decade. Future analyses will focus on whether this expenditure translates into greater stability or fuels further conflict escalation.
