Military Spending Soars Globally Amid Rise In Armed Conflicts

New war fronts have emerged across the globe, driving a rapid surge in military spending. In 2024, global military expenditure reached $2.718 trillion, up 9.4 per cent from 2023, marking the largest annual increase since 1988. Military spending now accounts for 2.5 per cent of global GDP, according to the Stockholm International Peace Research Institute (SIPRI).

Let's examine the major trends shaping military expenditure over the past decade. The sharp rise in armed conflicts worldwide has prompted significant increases in defence budgets, especially among nations directly involved.

Ukraine's military budget soared to $64.7 billion in 2024, equal to 34.5 per cent of its GDP. In contrast, defence spending stood at just 3.4 per cent of GDP in 2021. After Russia's invasion in February 2022, the figure spiked to 25.6%, then 36.5% in 2023, and remained elevated in 2024.

Russia's defence spending hit $149 billion in 2024, up 38 per cent from the previous year. As a share of GDP, military expenditure rose from 3.6 per cent in 2021 to 7.1 per cent in 2024, nearly doubling in three years.

Amid its ongoing conflict with Hamas and rising tensions with Iran, Israel spent $46.5 billion on defence in 2024, a 65 per cent increase over 2023. Military spending climbed from 4.4% of GDP in 2022 to 8.8 per cent in 2024, with little sign of abating.

Lebanon ramped up its military spending by 58 per cent in 2024. Defence expenditure rose from 1.6% of GDP in 2023 to 2.6 per cent in 2024, largely due to clashes with Israel.

Amid heightened regional tensions and the ongoing Russia-Ukraine war, Poland increased its defence budget from 2.2 per cent of GDP in 2022 to 4.2 per cent in 2024.

Internal Conflicts and Expanding War Zones Drive Global Military Budgets

Some of the most dramatic surges have also come from countries grappling with internal turmoil or simmering regional disputes. Here are the examples:

Myanmar, embroiled in civil conflict, hiked its defence spending from 3.8 per cent of GDP in 2023 to 6.8 per cent in 2024.

In the Armenia-Azerbaijan conflict zone:

Armenia allocated 5.5 per cent of its GDP to defence in 2024, and Azerbaijan, 5 per cent. Both now rank among just nine countries worldwide spending over 5 per cent of their GDP on their militaries.

Algeria, amid enduring tensions with Morocco, spent $21.8 billion or 8 per cent of its GDP on defence in 2024.