In terms of GDP share for military spending, Ukraine is in 1st place in the world - 34%, Israel is in 2nd place - 8.8% - SIPRI report: "Military spending in the world has set a new record"

By GDP share on military expenditures, Ukraine is in 1st place in the world - 34% of its GDP, Israel is in 2nd place - 8.8% of GDP
According to the latest report from the Stockholm International Peace Research Institute (SIPRI), in 2024 global military spending reached a record of 2.7 trillion dollars, which is 9.4% more than the previous year. This is the sharpest rise since the end of the Cold War.
The report notes that more than 100 countries increased their military budgets, which is related to global instability, the war in Ukraine, and regional conflicts, including in the Middle East.
Global Military Spending: New Record
The increase in global military spending is the result of various factors, including the wars in Ukraine and the Middle East. Total defense spending by countries increased by 9.4%, meaning many nations redirected their resources to strengthen security in times of instability. Significant changes have been observed in Europe and the Middle East, where countries are increasing defense budgets in response to internal and external threats.
Military Spending of Ukraine: Record Increase
Ukraine continues to spend huge sums on defense amid Russia’s aggression. In 2024, Ukraine's military spending increased by 2.9%, reaching 64.7 billion dollars, which is equivalent to 43% of Russia's spending. These figures confirm the immense burden on Ukraine's budget during the war. In 2024, Ukraine allocated 34% of its GDP for defense, which is the highest rate among countries in the world. All tax revenues are now directed to the army, limiting the possibility for further increase in civilian expenditures.
As noted by a SIPRI expert,
“In such a limited financial space, it will be difficult for Ukraine to continue increasing its military spending”.
Challenges for the Ukrainian economy will continue, especially considering the need for external financial aid to cover civilian expenses.
Increase in Military Spending in the Middle East
In the Middle East, military spending in 2024 amounted to 243 billion dollars, which is 15% more than in 2023 and 19% more than in 2015. This increase is linked to ongoing conflicts in the region, including the escalation in Gaza and efforts to contain Iranian influence.
Military Spending of Israel
Israel significantly increased its military spending by 65%, reaching 46.5 billion dollars in 2024. This is the sharpest rise in decades. Israel continues to wage war in Gaza and faces increasing threats from Hezbollah in Lebanon. Israel’s military spending accounts for 8.8% of GDP, making the country second in the world by this indicator. This increase is due to the necessity to strengthen defense capabilities against numerous threats, including the regional threat from Iran and its proxy groups.
Military Spending of Lebanon
Lebanon also increased its military spending by 58% in 2024, reaching 635 million dollars. This increase was made possible after several years of economic crisis and political upheaval in the country. However, despite expectations that other Middle Eastern countries would increase their military budgets in response to the conflicts in Gaza, significant increases were only recorded in Israel and Lebanon. In other countries in the region, either spending did not increase significantly, or they faced economic limitations preventing the expansion of defense budgets.
Iran and Other Countries: Changes in Military Spending
Iran, for its part, reduced its military spending by 10% to 7.9 billion dollars. Despite participating in regional conflicts and supporting proxy groups, economic sanctions have severely limited Iran's ability to increase its defense budget.
Germany and Europe: Important Changes in Defense Spending
Germany, like many other European countries, significantly increased its defense spending. In 2024, Germany allocated 88.5 billion dollars for defense, which is 28% more than the previous year. This was made possible by the creation of a special fund of 100 billion euros, designated for the modernization of the Bundeswehr. Germany now ranks fourth in the world in military spending, behind only the USA, China, and Russia.
Conclusion: The Global Trend of Increased Military Spending
The SIPRI report highlights that military spending worldwide continues to rise, especially in Europe and the Middle East. The war in Ukraine and conflicts in the Middle East remain the main factors driving the increase in military budgets. Given the current challenges, the international community must take steps to reduce military tension and encourage peace. It is important to remember that the increase in military spending is not only a security issue but also a socio-economic burden that countries such as Israel and Ukraine are facing.
NAnews and the Importance of Global Military Spending for Israel and Ukraine
NAnews continues to monitor key global events, including important economic and political processes that affect the security of Israel and Ukraine.
In the context of global changes and threats related to the increase in military spending, our platform provides up-to-date information for readers to understand the interconnection of global processes and their impact on daily life.
Israel and Ukraine are facing unique challenges, and NAnews will continue to inform its audience about ongoing changes, the importance of international relations, and security. We strive to ensure high-quality coverage of these topics for our audience, especially for Israelis of Ukrainian descent, considering their historical and cultural ties with both nations. https://nikk.agency/en/in-terms-of-gdp/