Fenella McGerty & Karl Dewey
In 2024, global defence spending reflected intensifying security challenges and reached USD2.46 trillion, up from USD2.24trn the previous year. Growth also accelerated, with the 7.4% real-terms uplift outpacing increases of 6.5% in 2023 and 3.5% in 2022. As a result, in 2024, global defence spending increased to an average of 1.9% of GDP, up from 1.6% in 2022 and 1.8% in 2023.
Increases were driven by deteriorating security environments and sharpened threat perceptions, particularly in Europe and the Middle East and North Africa (MENA), which both saw major increases, as did some key Asian countries. Moreover, easing inflation allowed many countries to invest in new capabilities rather than just covering higher operating costs and wages. The only region that did not see real-terms increases was Sub-Saharan Africa, where defence spending declined by 3.7%.
Europe, NATO and RussiaOver the last year, European defence spending jumped by 11.7% in real terms to reach USD457 billion, with 2024 marking the tenth consecutive year of growth. Indeed, Russia’s 2014 invasion of Crimea elevated threat perceptions across the continent and rejuvenated long-standing commitments from NATO members to spend 2% of GDP on defence. Regional growth in 2024 was dominated by the 23.2% real uplift in the German defence budget; however, future defence-budget growth there is uncertain following the collapse of the ruling ‘traffic light’ coalition in November 2024 and the upcoming election.
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