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2023
Military spending in the world rose to a new record of $2.44 trillion
At the end of 2023, global military spending reached $2.44 trillion, or 2.3% of global GDP, a new record. The growth compared to 2022 was recorded at 6.8%, as stated in the report of the Stockholm Peace Research Institute (SIPRI), published on April 22, 2024.
It is noted that military costs are growing in all five geographical regions due to the formed geopolitical situation. The highest rates of increase in spending are observed in Europe, Asia, Oceania and the Middle East.
The US remains the leader in terms of military costs in 2023 with an indicator of $916 billion, which is equivalent to 3.4% of national GDP. In second place in the ranking is China with $296 billion and 1.7% of GDP. In total, these two countries account for almost half (49%) of global military spending. Russia closes the top three with $109 billion, or 5.9% of GDP. On an annualized basis, the costs of the Russian Federation in the military sphere rose by 24%.
 | The growth of Russia's military costs in 2023 was largely facilitated by the country's economic indicators, which exceeded expectations, despite a significant drop in oil and gas revenues, the report said. |  |
The top five of the SIPRI rating also includes India and Saudi Arabia with $83.6 billion and $75.8 billion, respectively, and a share of 2.4% and 7.1% of GDP. Overall, the five listed states accounted for about 61% of all military spending globally in 2023. The total spending of NATO members in 2023 amounted to $1.34 trillion, or 55% of global spending. It is also noted that Ukraine, which is on the eighth line in the list, military spending reached $64.8 billion, or 37% of GDP: growth compared to 2022 was recorded at 51%. Ukraine's contribution to global costs is estimated at 2.7%.[1]
Estimating some countries' defense costs as a share of their GDP
2022
All countries of the world spent $2.24 trillion on armament
In 2022, global armament spending increased by 3.7% in real terms and reached $2.24 trillion. This was announced in his report by the Stockholm International Peace Research Institute at the end of April 2023.
Military spending in Central and Western Europe has returned to Cold War levels, according to the report. In 2022, Central and Western Europe spent about $345 billion on military purposes. Some countries have already increased their defense spending, others have announced their intention to increase it by 2032. The most dramatic increase in military spending occurred in Finland (36%), Lithuania (27%), Sweden (12%) and Poland (11%).
The three countries with the most spending were the United States, China and Russia. These three countries accounted for 56% of the global total. The situation in Ukraine and tensions in East Asia were the main factors in the growth, which has been going on since 2014. In Europe, military spending rose 13%.
The United States remains the country with the highest military spending, which in 2022 reached $877 billion, or 39% of the global total, which is three times higher than the military spending of China, which ranks second. The US spending growth rate of 0.7% would have been even higher if inflation had not reached its highest level since 1981, the report said.
In 2022, NATO member countries as a whole spent $1.2 billion on military spending, which is 0.9% more than in 2021. In Central and Western Europe, the UK had the highest military spending at $68.5 billion, of which $2.5 billion (3.6%) was allocated to support Ukraine.
China, which ranks second in the world in military spending, spent $292 billion on its armed forces in 2022 - 4.2% more than in 2021, and 63% more than in 2013. The country's military spending has been growing since 1995.
According to the Stockholm International Peace Research Institute, in Russia, military spending in 2022 increased by 9.2% and amounted to about $86.4 billion, which is equivalent to 4.1% of GDP. In 2021, they accounted for 3.7% of GDP.
Military spending of Ukraine in 2022 amounted to $44 billion. This represents a 640% increase in one year. This is an unprecedented case in the entire history of the revision of military spending, experts said in the report. As a result, including war-related damage to Ukraine's economy, the military burden as a percentage of the budget rose from 3.2% in 2021 to 34% in 2022.
The total volume of military spending in Asia and Oceania is $575 billion, which is 2.7% more than in 2021, and 45% more than in 2013. A continuous upward trend began in 1989.
Military spending Japan in the period from 2021 to 2022 increased by 5.9% and reached $46 billion or 1.1% of GDP. This is the largest amount allocated by the government for military spending since 1960. Japan is at a critical turning point in its military policy, restrictions Japan has imposed on military spending appear to be easing, says program researcher Xiao Liang.
In 2022, India ranked fourth in military spending, increasing it by 6% compared to 2021 to $81.4 billion. Saudi Arabia ranked fifth in this ranking with a 16% increase in military spending to $75 billion, the first increase since 2018.[2]
The EU increased its military spending by 30% compared to 2013
In 2022, the European Union increased military spending by about 30% compared to 2013. This was announced on May 13, 2023 by Josep Borrell, High Representative of the European Union for Foreign Affairs and Security Policy. Read more here.
Russia's defense spending increased by a third to 4.679 trillion rubles
The Russian authorities pledged 4.679 trillion rubles for the country's defense, which is 1.2 trillion rubles more than previously approved. This became known in September 2022 from the "Main directions of budgetary, tax and customs-tariff policy for 2023-2025."
As Vedomosti writes with reference to this document, in 2023 defense spending will amount to almost 5 trillion rubles instead of the previous 3.6 trillion. According to the draft of the Main Directions of the Ministry of Finance, in 2024, expenses will decrease slightly - to 4.6 trillion rubles. In the approved budget for 2022-2024. it was planned to allocate 3.8 trillion rubles. Further, defense spending will also continue to decline: in 2025, they will amount to 4.2 trillion rubles.
The document specifies that in general for 2023-2025. spending on national defense, security and law enforcement activities will average 5.7% of GDP. Significant funds are planned to be allocated for the "restoration of friendly territories and the strengthening of national defense," but specific amounts are not named.
Vasily Kashin, director of the Center for Comprehensive European and International Studies at the Higher School of Economics, believes that additional amounts in 2022 could go to the purchase of weapons and the activities of the army during a special military operation in Ukraine. According to the expert, there are still reserves in the budget to increase costs.
In 2022, approximately 2.8 trillion rubles will be spent in the direction of "national security and law enforcement," as planned in the law on the budget for the current three-year period. In 2023, expenses under this item will grow to 4.2 trillion rubles instead of the initially planned 2.9 trillion, in the next two years they are planned at the level of 4.3 trillion rubles (forecast in the budget law for 2023 - 3 trillion rubles).[3]
US military budget increase by $35 billion
At the end of March 2022, US President Biden approved annual state spending on defense and national security to $813.3 billion, which is $35 billion more than the previous figure. The increase in the military budget comes against the background of how the United States is trying to counter a number of international threats that, according to the American authorities, come from China and Russia. Read more here.
2021: China increases defense spending by 6.8%
In 2021, China's spending on national defense reached 1.36 trillion yuan (about $209 billion at the rate at the time of publication of these official data - March 5, 2022), which is 6.8% more than a year ago. At the same time, in 2022, the country is going to increase the military budget by 7.1%, to 1.45 trillion yuan, according to the draft budget of the country, distributed at the opening of the fifth session of the National People's Congress (NPC) of the 13th convocation. Read more here.
2020
Russia ranked 4th in military spending
World military spending in 2020 amounted to $1.98 trillion, which is 2.6% more than a year earlier, and reached 2.4% of world GDP against a 2.2% share a year earlier. This is evidenced by data from the Stockholm International Peace Research Institute (SIPRI).
The largest amount of military spending remains USA at - in 2020, the figure amounted to $778 billion. The top three countries also included (China $252 billion) and (India $72.9 billion). Russia located in fourth place, spending about $61.7 billion on the military component, which is 2.5% more than in 2019. Compared to 2011, costs increased by 26%. At Russia the same time, it is noted that actual military spending in 2020 was 6.6% lower than its initial military budget.
According to SIPRI, due to the economic consequences of the COVID-19 coronavirus pandemic, the global runway for 2020 decreased by 4.4%.
| | As a result, the share of military spending in GDP - the so-called military burden - reached 2.4% in 2020. This was the largest year-on-year increase in the military burden since the 2009 world financial and economic crisis, the institute said in a statement. | |
Experts note a significant increase in military spending in NATO countries. As a result, 12 member countries of the organization sent about two or more percent of their GDP into service, the report said.
According to SIPRI, US military spending grew for the third year in a row and in 2020 accounted for 39% of all world spending on war. China's military spending has risen for the 26th consecutive year - up 76% since 2011.
| | China's continued spending growth is partly due to the country's long-term plans to modernize and expand military power in line with its stated desire to catch up with other top military powers, SIPRI senior research fellow Nan Tian said.[4] | |
Defense spending in the world increased by 1.9%, to $1.93 trillion
In 2020, world defense spending amounted to $1.93 trillion, an increase of 1.9% compared to 2019. Positive dynamics has remained for seven years in a row, according to data from the Jane's information and analytical center.
In 2019, defense spending on a global scale amounted to $1.8 trillion. In 2010, expenses were $180 billion less than in the past, the study notes.
In 2020, the largest growth (+ 5.6%) in spending was demonstrated by European countries. Western Europe accounted for 15% of annual defense costs. The highest proportion (40%) is recorded in North America. In the Asia-Pacific region, the figure was 28%, in Russia and the CIS - 2%.
Analysts believe that due to the consequences of the COVID-19 pandemic, growth will slow down slightly in all regions except Asia-Pacific, Europe, and Latin America. However, the decline in countries dependent on commodity exports, such as oil, will be balanced by an increase where steady growth is still expected.
According to Jane's lead analyst Andrew McDonald, the pandemic "apparently could stifle the growth of purchasing power in regions such as the Middle East and further suppress Russian financing," a relative decline awaits the US defense budget.
According to the federal budget for 2020-2022, the expenses of the Ministry of Defense of the Russian Federation in 2020 were supposed to grow by 6.6%. The document states that the expenditure part of the budget allocated for 2020 by the Ministry of Defense is 1.894 trillion rubles. In 2019, Defense Department spending totaled 1.776 trillion.
Most of the spending in 2020, 1.056 trillion rubles, fell on national defense. At the same time, the budget classified the "main indicators of the state defense order" for the period under review, as well as part of the data on subsidies to state-owned companies and legal entities.[5]
2019: Russia enters top 5 countries with highest military spending
Russia entered the top 5 countries with the highest military spending at the end of 2019. This was reported in the report of the Stockholm Peace Research Institute (SIPRI), which was released at the end of April 2020.
In 2019, Russia spent about $65.1 billion on military needs, which is 4.5% more than a year earlier. Costs correspond to 3.9% of GDP.
In this rating, the Russian Federation rose by two lines compared to 2018 - from sixth to fourth. Russia was ahead of Saudi Arabia, which in 2019 spent $61.9 billion on defense, which is 16% less than a year earlier. As a result, the country dropped from third place to fifth on the list.
| | The burden of Russian military spending, equal to 3.9% of GDP, was in 2019 one of the highest in Europe, - Alexander Kuimova, a researcher at SIPRI, told TASS Information Agency of Russia. - In 2019, Russia increased the costs of ensuring the activities of the Armed Forces of the Russian Federation, the activities of the National Guard troops, and there was an increase in "other expenses of the Ministry of Defense" (for social support of employees and their families, etc.). | |
The leaders of the rating of countries with the largest military budgets at the end of 2019 were the United States ($732 billion), China ($261 billion) and India ($71.1 billion).
In general, countries from the top five in 2019 accounted for 62% of the total military costs in the world. At the same time, the United States military spending increased by 5.3% over the year, and China - by 5.1%. If we compare the current situation with 2010, then China has an increase of 85% over ten years.
The global volume of military spending in 2019 amounted to a record $1.917 trillion or 2.2% of global GDP.
In Europe, in terms of military spending growth, Germany holds the lead ($49.3 billion; 10% growth). The total spending of 11 countries in the Middle East experienced a 7.5% drop and amounted to $147 billion. In South America, the volume of military spending in 2019 remained unchanged - $52.8 billion, of which 51% fell on Brazil.[6]
Notes
- ↑ Global military spending surges amid war, rising tensions and insecurity
- ↑ Total global military spending in 2022 reached $2.24 trillion
- ↑ National defence spending to rise by a third this year
- ↑ World military spending rises to almost $2 trillion in 2020
- ↑ 7 years of uninterrupted growth takes global defence spend to USD1.9 trillion, says Janes
- ↑ TRENDS IN WORLD MILITARY EXPENDITURE, 2019
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