Top Countries with Highest Military Spending as a Percentage of GDP

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Top Countries with the Highest Military Spending as a Percentage of GDP in 2025

Ukraine Leads the World with Sky-High Military Investment

Ukraine continues to dominate the global military spending landscape, allocating a staggering 34% of its GDP to defense. This figure underscores ongoing tensions and the country’s urgent need to bolster its military capabilities amidst regional conflicts. Ukraine’s commitment to defense has reshaped its economic priorities, highlighting the critical importance of military readiness in today’s geopolitical climate.

Israel Maintains a Robust Military Budget Despite Regional Tensions

Israel follows closely with 8.8% of its GDP dedicated to military expenditures. The nation’s strategic position in the Middle East and persistent security concerns drive its substantial defense spending. This high percentage reflects the nation’s focus on advanced technology and maintaining a modern armed force capable of deterring threats.

North African and Gulf States Prioritize Defense Spending

Algeria (8.0%) and Saudi Arabia (7.3%) stand out in Africa and the Middle East, respectively, demonstrating regional emphasis on military strength. Notably, Kuwait (4.8%) allocates nearly 5% of its GDP to defense, underscoring its focus on national security amid ongoing regional uncertainties.

Russia’s Defense Budget Reflects Its Global Military Strategy

Russia continues its long-standing tradition of significant military expenditure, representing 7.1% of its GDP. This robust commitment underscores its focus on modernizing its armed forces and projecting power both regionally and internationally, especially as it navigates complex geopolitical challenges.

Western Powers and Military Spending

The United States, with 3.4%, maintains the lowest percentage among the top-tier spenders but still leads in absolute military expenditure globally. Countries like Poland, Colombia, Greece, and Singapore allocate between 2.8% and 4.2%, reflecting their strategic priorities and regional security concerns.

Asia and Europe’s Defense Contributions

South Korea (2.6%), India (2.3%), and the United Kingdom (2.3%) exemplify the diverse defense approaches across Asia and Europe, balancing economic growth with security needs. European nations such as Finland and Norway, with around 2.1%, remain committed to maintaining strong defense capabilities.

Emerging Powers and Regional Players

Iran (2.0%) and Sweden (2.0%) are notable regional actors investing heavily relative to their GDPs. Meanwhile, China (1.7%) continues its strategic modernization efforts, signaling its aspirations for a stronger global military presence.

Lower-Budget but Significant Contributors

Nations like Japan (1.4%), Spain (1.4%), and Canada (1.3%) allocate moderate shares of their GDP to defense, reflecting stable regional security environments and strategic alliances. Brazil, Mexico, Indonesia, and Switzerland follow with smaller percentages but remain vital regional players.

Global Military Spending Perspective

Worldwide, military expenditures constitute about 2.5% of global GDP. Despite variations, this figure exemplifies the persistent emphasis nations place on defense amid evolving security landscapes.

Key Takeaways

Ukraine’s expenditure remains unprecedented, reflecting ongoing conflict challenges.
Middle Eastern nations continue high defense spending due to regional instability.
Global military investment varies widely, from less than 1% to over 30% of GDP.
Major powers like China and Russia are actively modernizing their militaries, indicating a new era of strategic competition.

Source: SIPRI, 2025. Data regarding China, Russia, and Saudi Arabia are estimated figures.