The geopolitical tensions that arose in Ukraine last year have resulted in a significant increase in global military spending, according to the Stockholm International Peace Research Institute (SIPRI). In 2023, weapons investments reached a record figure of 2,290 billion euros, which is 6.8% higher than the previous year and accounts for 2.3% of global GDP. This surge was primarily driven by the USA and NATO.
The United States led the way with an investment of 860 billion euros, which is 2.3% higher than the previous year and accounts for 37% of global spending. This is three times higher than China’s investment, which placed second in the ranking. The USA and NATO members together make up 68% of total spending among the 31 NATO countries.
In Europe, NATO countries also increased their defense investments, accounting for 28% of total spending within the Alliance – the highest level in a decade. Eleven of these countries spent more than the committed amount of 2% of GDP, with Poland standing out with a staggering annual increase of 75%. The total expenditure of NATO members amounted to 1,260 billion euros, which represents nearly half of the world’s total military spending.
Asia and the Middle East also witnessed substantial increases in military spending. China invested almost $95 billion euros, accounting for half of all investments in Asia-Oceania region. Japan and Taiwan also saw increases in their military expenditure due to rising tensions in East Asia. The Middle East recorded the largest increase in a decade with Saudi Arabia leading the region’s military spending spree. Israel also boosted its defense budget due to ongoing conflicts with Palestine and Syria.
Central America and Caribbean experienced an uptick in military spending primarily due to efforts against organized crime and drug trafficking operations prevalent throughout these regions. Brazil held an unfortunate distinction as being eighteenth country globally in terms of military expenditure despite being one of Latin America’s largest economies.
Overall, it appears that shifting geopolitical landscapes around the world are contributing to increased military spending across various regions globally as nations prioritize their national security interests over other economic considerations such as trade or diplomacy .
