Global Military Expenditure Hits Historic High Amid Ukraine Conflict

Amidst the backdrop of the conflict in Ukraine, global military expenditure surged to a remarkable high in 2023, reaching a staggering USD 2.44 trillion, as outlined by the Stockholm International Peace Research Institute (SIPRI).

Marking a notable increase of 6.8% over the previous year, this surge in military spending represented the highest recorded growth since 2009. Notably, all five geographic regions witnessed an uptick in expenditure for the first time in 15 years, amounting to 2.3% of the global GDP.

Experts attribute this surge primarily to the ongoing conflict in Ukraine and escalating geopolitical tensions across Asia, Oceania, and the Middle East.

The top five spenders on defense remained unchanged from the previous year, with the USA leading the pack. In 2023, the US allocated USD 916 billion, accounting for 3.4% of its GDP, a slight decrease from the previous year's 3.5%.

China followed with USD 296 billion, representing 1.7% of its GDP, while Russia ranked third, allocating USD 109 billion, equivalent to 5.9% of its GDP, marking a significant increase from previous years. India and Saudi Arabia rounded up the top five spenders.

Russia's military spending saw a substantial 24% increase compared to 2022 and a striking 57% surge since 2014. This surge accounted for 16% of the country's total budget expenditure, marking a record high since the collapse of the USSR. However, SIPRI notes that the actual expenditure is difficult to ascertain due to the opacity of Russia's financial system.

Despite economic challenges, Ukraine increased its defense spending by 51% to USD 64.8 billion, representing 37% of its GDP and 58% of government expenditure. With Western allies contributing USD 35 billion in military aid, the Ukrainian share of military expenditure surged even higher.

NATO countries collectively accounted for USD 1.34 trillion, with the United States leading with a 68% share. Notably, 11 NATO countries met the target of allocating 2% of their GDP to military spending, the highest number in a decade.

The surge in military spending reflects the global deterioration of peace and security, prompting concerns about an escalating cycle of action and reaction in an increasingly volatile geopolitical landscape, as highlighted by senior researcher Nan Tian.