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, with Europe’s rearmament push driving the increase even as U.S. outlays declined. The report points to continued geopolitical risk and sustained defense-budget expansion across Europe, with implications for defense contractors and sovereign fiscal priorities.

Analysis

Global military spending rose for an 11th straight year to a record $2.89 trillion in 2025, with Europe’s rearmament push driving the increase even as U.S. outlays declined. The report points to continued geopolitical risk and sustained defense-budget expansion across Europe, with implications for defense contractors and sovereign fiscal priorities.