economy
Europe's Rearmament Push Drives Global Military Spending to Record $2.9 Trillion Despite U.S. Pullback
Global military spending rose for an 11th straight year to a record $2.89 trillion in 2025, driven by Europe's rearmament push, even as U.S. outlays declined.
TL;DR
- Global defense outlays reached $2.89 trillion in 2025, an 11th consecutive year of growth, driven by Europe and Asia.
- Europe's military spending increased by 14% to $864 billion, with Germany and Spain significantly boosting their expenditures.
- U.S. military expenditure declined by 7.5% in 2025, largely due to the absence of new financial aid for Ukraine.
- Spending in Asia and Oceania rose by 8.1% to $681 billion, with Taiwan and Japan increasing their military budgets significantly.
- Defense stocks in Asia and Europe, including companies like Hanwha Aerospace, Mitsubishi Heavy Industries, Rheinmetall, and BAE Systems, saw considerable gains.
- The European Union plans to mobilize up to 800 billion euros by 2030 to bolster regional security.
- Global military spending as a share of GDP climbed to 2.5%, the highest level since 2009.