Global military spending surges to record high amid geopolitical tensions

The world spends more money on armament and defense every year.

Global military expenditure surged to $2,443 billion in 2023, marking the ninth consecutive year of increased spending, according to the latest data from the Stockholm International Peace Research Institute (SIPRI).

The 6.8 percent year-on-year increase was the steepest since 2009, pushing military spending to the highest levels ever recorded, probably witnessing new records in the coming years.

The sharp rise in global military expenditure is largely attributed to the ongoing war in Ukraine and escalating geopolitical tensions in Asia, Africa and the Middle East. Military spending increased in all five geographical regions, with significant hikes noted in Europe, Asia, Oceania, and the Middle East.

Major military spenders

The concentration of military spending remains with a small group of states. The United States and China, the top two spenders, accounted for nearly half of global military expenditure in 2023.

Together, the top ten military spenders represented 74 percent of the world total, amounting to $1799 billion. Notably, Ukraine’s military spending surged by 51 percent to $64.8 billion, making it the eighth largest spender globally. This is because Ukraine’s current conflict with Russia after Russia invaded Ukraine on February 24, 2022.

US military expenditure

The United States maintained its position as the largest military spender, with expenditures reaching $916 billion in 2023, an increase of 2.3 percent from the previous year. The U.S. prioritized spending on research, development, test, and evaluation (RDT&E), reflecting a strategic shift towards developing advanced weapon systems. Military aid to Ukraine was also a significant component of U.S. spending, with $35.7 billion allocated in 2023.

China’s military spending

China, the second largest military spender, allocated an estimated $296 billion to its military in 2023, marking a 6.0 percent increase from 2022. China’s expenditure constituted 12 percent of global spending and 50 percent of spending in Asia and Oceania. This continuous increase is driven by China’s aim to enhance its military capabilities amidst regional tensions.

Regional trends in military expenditure

Africa

Military expenditure in Africa totaled $51.6 billion in 2023, a 22 percent increase from the previous year. North Africa saw a substantial rise, particularly in Algeria, where spending grew by 76 percent to $18.3 billion.

Americas

The Americas accounted for 41 percent of global military spending in 2023. North America, led by the United States and Canada, saw a modest increase in expenditure, while Central America and the Caribbean experienced a slight decline.

Asia and Oceania

Military spending in Asia and Oceania reached $595 billion, driven by increases in China, Japan, South Korea, and Taiwan. Japan and Taiwan recorded notable hikes, reflecting their strategic responses to regional security challenges with China.

Europe

Europe’s military spending totaled $588 billion, influenced heavily by the ongoing conflict in Ukraine and increased expenditures in Central and Western Europe. Poland and Finland recorded significant increases, driven by regional security concerns due to the situation in Ukraine.

Although Europe has seen an upward trend in military spending, it suffers from low operational readiness and personnel shortages.

Middle East

The Middle East saw a 9.0 percent increase in military spending, reaching $200 billion in 2023. Saudi Arabia, Israel, and Türkiye were the major spenders in the region, with Israel’s expenditure rising significantly due to the conflict in Gaza.

Israel’s military operation in Gaza after October 7 and its possible military operation in South Lebanon in the coming days have raised tensions in the region to the highest level. Growing tension between Iran and Israel has a direct impact on other countries in the region, with each country increasing its military defense expenditures to counter the growing threat.

Military spending as a share of GDP

The global military burden rose to 2.3 percent of GDP in 2023, with the Middle East having the highest average military burden at 4.2 percent. Ukraine recorded the largest increase, with military spending constituting 37 percent of its GDP.

In these days of tension and conflict in every region of the world, countries have turned to military expenditures rather than spending some of their capital on areas that can directly benefit the civilian population. Europe will probably increase its military spending gradually in the future. The ongoing war in Ukraine and the unsustainability of aid to Ukraine will cause the U.S. and E.U. countries to focus more on military spending and defense industry investments.

It is not possible to have a strong and sustainable army without a strong economy. In these days when threat perceptions are constantly changing and new threat elements are entering our lives, countries will probably keep up with the flexible and changing threat perception in their defense elements and act accordingly.