The world is entering the most expensive era of military spending in recorded history. In 2025, the share of government spending on defense reached record levels both in Russia and Ukraine, according to analysts at the Stockholm International Peace Research Institute or SIPRI.
Military budgets surge amid prolonged war and global tension
According to SIPRI, Russia’s military expenditure increased by 5.9% to $190 billion, accounting for 7.5% of GDP — one of the highest shares globally.
Ukraine simultaneously raised its defense spending by 20% to $84.1 billion, or roughly 40% of GDP, making it the country with the highest defense burden relative to its economy worldwide.
Analysts emphasize that Ukraine ranks first globally in defense spending as a share of GDP.
"Their spending is likely to keep growing in 2026 if the war continues, with revenues from Russia’s oil sales increasing and a major European Union loan expected by Ukraine," claimed SIPRI analyst Lorenzo Scarazzato.
Europe and Asia enter phase of accelerated militarization
In 2025, NATO’s 29 European members collectively spent $559 billion on defense. Only 22 countries reached the 2% of GDP benchmark, which remains a key Alliance standard.
Germany became Europe’s largest defense investor, spending $114 billion and accounting for 2.3% of GDP, surpassing NATO’s standard for the first time since 1990.
Spain saw a 50% increase to $40.2 billion, also exceeding the 2% threshold for the first time since 1994.
Asia accelerates rearmament to historic highs
Japan increased military spending by 9.7% to $62.2 billion, bringing it to 1.4% of GDP — the highest level since 1958.
Taiwan raised defense spending by 14% to $18.2 billion, or 2.1% of GDP, marking its largest annual increase since the late 1980s.
Earlier, President Volodymyr Zelenskyy said Ukraine would direct the first tranche of the EU’s €90 billion support package toward domestic weapons production and energy security, outlining how the funds will be used after the bloc’s approval earlier this month.
Zelenskyy said the priority for the initial funding will be strengthening Ukraine’s domestic defense industry, particularly drones and broader military technology production.
