2025 military spending: +2.9% to };.9 trillion

Context

In brief

• Military spending 2025: 2.9 trillion dollars
• 2.9% increase compared to 2024
• United States, China, and Russia represent more than half of the total

Key facts

• What: Global military spending
• When: 2025
• Where: World
• Who: SIPRI
• Amount: 2.9 trillion dollars
• What: Main contributors
• When: 2025
• Where: United States, China, Russia
• Who: SIPRI
• Amount: 1.48 trillion dollars
• What: Increase in US military spending
• When: 2025
• Where: United States
• Who: SIPRI
• Amount: 954 billion dollars
• What: Increase in European military spending
• When: 2025
• Where: Europe
• Who: SIPRI
• Amount: 864 billion dollars
• What: Increase in German military spending
• When: 2025
• Where: Germany
• Who: SIPRI
• Amount: 114 billion dollars
• What: Increase in Spanish military spending
• When: 2025
• Where: Spain
• Who: SIPRI
• Amount: 40.2 billion dollars
• What: Increase in Russian military spending
• When: 2025
• Where: Russia
• Who: SIPRI
• Amount: 190 billion dollars
• What: Increase in Ukrainian military spending
• When: 2025
• Where: Ukraine
• Who: SIPRI
• Amount: 84.1 billion dollars
• What: Increase in Asia-Oceania military spending
• When: 2025
• Where: Asia-Oceania
• Who: SIPRI
• Amount: 681 billion dollars
• What: Increase in Chinese military spending
• When: 2025
• Where: China
• Who: SIPRI
• Amount: 336 billion dollars
• What: Increase in Japanese military spending
• When: 2025
• Where: Japan
• Who: SIPRI
• Amount: 62.2 billion dollars
• What: Increase in Taiwanese military spending
• When: 2025
• Where: Taiwan
• Who: SIPRI
• Amount: 18.2 billion dollars

The world allocated nearly 2.9 trillion dollars to military spending in 2025, marking the eleventh consecutive year of growth amid multiple conflicts, according to a reference report published Monday by SIPRI, the Stockholm International Peace Research Institute. The “military burden” — the share of global GDP devoted to military spending — is the highest since 2009. The three main contributors — the United States, China, and Russia — accounted for more than half of the total, with 1.48 trillion dollars. The increase reached 2.9% in one year, despite a decline in US military spending, down 7.5% compared to 2024 at 954 billion dollars. The decline is explained solely by the fact that no new military financial aid to Ukraine was approved, unlike the three previous years, during which a total of 127 billion dollars was promised. This decline should also be short-lived, as the US Congress has approved spending exceeding 1.0 trillion dollars for 2026, and this could reach 1.5 trillion dollars in 2027 if Donald Trump’s budget proposal is adopted. “Everything indicates that the world feels less secure and is spending more on its armed forces to cope with the global context,” notes SIPRI researcher Lorenzo Scarazzato, interviewed by the AFP news agency.

The main driver of this global increase is Europe

The main driver of this global increase is Europe, which includes Russia and Ukraine, and has registered a 14% increase in spending to 864 billion dollars. 'This is explained by two main factors. One is the ongoing war in Ukraine, and the other is the disengagement of the United States from Europe,' Scarazzato declared. The United States 'are pushing Europe to take on more of its own defense.' Germany, the fourth country in the world in terms of spending, increased it by 24% in 2025 to reach 114 billion dollars. Spain also significantly increased its spending by 50%, to 40.2 billion dollars, reaching over 2% of GDP for the first time since 1994.

The war in Ukraine

Regarding the conflict now in its fourth year, Russia's spending has increased by 5.9% to reach 190 billion dollars, or 7.5% of GDP. Ukraine, for its part, has increased its spending by 20% to reach 84.1 billion dollars, or 40% of GDP.

Strong increase in Asia

Despite persistent tensions in the Middle East, spending has only marginally increased by 0.1% in the region, reaching 218 billion dollars. Israel and Iran have reduced their spending, although this data should be relativized: in the Iranian case, nominal spending has increased and the reduction is explained by high inflation. As for Israel, the 4.9% decrease compared to 2024 (to 48.3 billion dollars) is explained by the ceasefire in Gaza. If we look at the multi-year data, however, there is still an increase of 97% compared to 2022 and for 2026 the attack launched against Iran promises a new increase. In the Asia-Oceania region, spending totaled 681 billion dollars, or an 8.5% increase compared to 2024 - the strongest annual increase since 2009. The 'main actor' in the region is China, which has increased its spending every year over the past three decades and spent approximately 336 billion dollars in 2025, notes the SIPRI. 'But the interest comes from the reaction of some other states, such as South Korea, Japan, and Taiwan, to the perception of the threat,' he declared. Japan thus increased its military spending by 9.7%, reaching 62.2 billion dollars in 2025, or 1.4% of GDP - the highest share since 1958 - while Taiwan increased its spending by 14%, reaching 18.2 billion dollars.

Operational details

Implications for cross-border workers

The increase in global military spending can have various implications for cross-border workers who work in Ticino and reside in Italy. First, it's important to consider how these changes might affect the local economy and job opportunities. An increase in military spending can lead to a greater demand for specialized personnel in sectors such as defense, security, and technology, which could create new employment opportunities for cross-border workers.

Economic Impact

The increase in military spending can have a significant impact on both the global and local economy. In Ticino, where many cross-border workers are employed in sectors such as finance, commerce, and tourism, it's important to monitor how these changes might influence economic stability and business opportunities. An increase in military spending can lead to greater geopolitical instability, which in turn can affect financial markets and investment opportunities.

Impact on Security

The increase in military spending can also have an impact on the security of cross-border workers. With rising geopolitical tensions, it's important for cross-border workers to be aware of potential security risks and take necessary precautions. This can include planning safe travels, knowing local regulations, and preparing for potential emergencies.

Tax Impact

Another aspect to consider is the tax impact of military spending. An increase in military spending can lead to higher taxes or a reduction in public services, which can affect the purchasing power of cross-border workers. It's important for cross-border workers to be aware of these possible consequences and plan their finances accordingly.

Comparison with Previous Situations

To better understand the impact of military spending, it's useful to compare the current situation with that of previous years. For example, in 2024, global military spending was lower compared to 2025, indicating a trend of increasing military spending worldwide. This comparison can help cross-border workers better understand current trends and plan their financial and career strategies accordingly.

Future Scenarios

It's also important to consider future scenarios of military spending. According to the SIPRI report, U.S. military spending could reach 1.5 trillion dollars in 2027 if Donald Trump's budget proposal is adopted. This could have a significant impact on the global economy and job opportunities for cross-border workers. It's important to monitor these developments and adapt strategies accordingly.

Useful tools to protect your net income

To reduce FX leakage, compare CHF-EUR exchange options and banks for cross-border workers.

Key points

What to do for cross-border workers

For cross-border workers who work in Ticino and reside in Italy, it is important to be aware of the implications of military spending and take the necessary precautions to protect their finances and security. Here are some concrete steps that cross-border workers can follow:

Monitor the news

It is important to monitor news related to military spending and geopolitical tensions. This can help cross-border workers stay informed and make conscious decisions about their finances and security.

Plan your finances

With the increase in military spending, there may be an impact on taxes or public services. Cross-border workers should plan their finances accordingly and consider the possibility of diversifying their investments to reduce risks.

Prepare for potential emergencies

With the increase in geopolitical tensions, it is important that cross-border workers are prepared for potential emergencies. This can include creating an emergency plan, knowing local regulations, and planning safe travels.

Consider new job opportunities

The increase in military spending can create new job opportunities in sectors such as defense, security, and technology. Cross-border workers should consider exploring these opportunities and acquiring the necessary skills to take advantage of them.

Use calculation tools

To help cross-border workers plan their finances, tools such as the salary calculator can be used. This tool can help cross-border workers calculate their net salary and plan their finances accordingly.

Compare job opportunities

Cross-border workers can also use tools like the permit comparator to compare job opportunities in Ticino and Italy. This can help cross-border workers find the best job opportunities and plan their careers accordingly.

Plan for the future

Finally, it is important that cross-border workers plan for their future and consider the possible implications of military spending. This can include planning for retirement, creating an emergency fund, and diversifying investments.

Source: rsi.ch