Military expenditure (% of GDP) in United States was reported at 3.3618 % in 2023, according to the World Bank collection of development indicators, compiled from officially recognized sources. United States - Military expenditure (% of GDP) - actual values, historical data, forecasts and projections were sourced from the World Bank on March of 2025.

The United States led the ranking of the countries with the highest military spending in 2023, with 916 billion U.S. dollars dedicated to the military. That constituted over 40 percent of the total military spending worldwide that year, which amounted to 2.4 trillion U.S. dollars. This amounted to 3.5 percent of the U.S. gross domestic product (GDP), placing the U.S. lower in the ranking of military expenditure as a percentage of GDP than for instance Saudi Arabia, Israel, Algeria, and Russia. China was the second largest military spender with an estimated 296 billion U.S. dollars spent, with Russia following in third. Defense budgetAccording to the U.S. Congressional Budget Office, the outlays for defense will rise to 1.1 trillion U.S. dollars by 2033. The largest parts of the budget are dedicated to the Departments of the Navy and the Air Force. The budget for the U.S. Air Force for 2024 was nearly 260 billion U.S. dollars.Global military spendingThe value of military spending globally has grown steadily in the past years and reached 2.44 trillion U.S. dollars in 2023. Reasons for this are the outbreak of the Russia-Ukraine war in 2022, the war in Gaza, as well as increasing tensions in the South China Sea. North America is by far the leading region worldwide in terms of expenditure on the military.

As a share of gross domestic product (GDP), Ukraine spent more on its military than any other country in 2023, reaching 37 percent of the country's GDP. The high figure is due to the country being invaded by Russia in February 2022. Algeria and Saudi Arabia followed behind.Leading military spending countriesIn gross terms, the countries with the highest military spending are the United States, China, and Russia. However, these are countries with large populations and GDPs, and smaller countries usually cannot compete alone, regardless of how much they invest. For this reason, they form alliances such as the North Atlantic Treaty Organization (NATO). NATO countries aim to pool two percent of their GDP towards their own militaries and to aid each other in case of war. Regional differencesThe past decade has seen an increase in global military spending. This has not been distributed evenly. That period saw large positive changes in military spending from several Asian countries, including a large increase from China. While this does not reflect the number of active conflicts, it reflects growing tensions in global affairs.

The ratio of military expenditure to gross domestic product (GDP) in the United States saw no significant changes in 2022 in comparison to the previous year 2021 and remained at around 3.45 percent. Still, 2022 marked the second consecutive decline of the ratio. These figures refer to the total amount of money spent on a country's military, as a share of its gross domestic product (GDP). These figures apply to current expenditure on a country's armed forces, including peacekeeping forces and defense ministries, among others.Find more key insights for the ratio of military expenditure to gross domestic product (GDP) in countries like Mexico and Canada.

The statistic represents the U.S. defense outlays from 2000 to 2023 with an additional forecast from 2024 to 2034, as a percentage of the gross domestic product. Defense outlays amounted to 746 billion U.S. dollars in 2022, which was about three percent of the U.S. GDP. The forecast predicts an increase in defense outlays up to 1.1 trillion U.S. dollars by 2033, which would be about 2.8 percent of U.S. GDP.

Graph and download economic data for Government current expenditures: Federal: National defense (G160461A027NBEA) from 1959 to 2023 about defense, expenditures, federal, government, GDP, and USA.

Graph and download economic data for Shares of gross domestic product: Government consumption expenditures and gross investment: Federal: National defense (A824RE1A156NBEA) from 1929 to 2024 about Shares of GDP, defense, investment, gross, federal, consumption expenditures, consumption, government, GDP, and USA.

In 2024, Poland's defense spending as a share of gross domestic product was 4.12 percent, the highest of all NATO member states, followed by Estonia at 3.43 percent, and then the United States at 3.38 percent. It is a target of NATO that every member country should spend at least two percent of their GDP on defense. As of this year, it is estimated that all but eight of the alliance's 31 member states were meeting this target. The average expenditure on defense expenditure across all NATO member states was 2.71 percent in 2024, compared with 2.53 percent in the previous year. Article 5 triggered in the aftermath of 9/11 While NATO was founded with the aim of deterring the Soviet Union in the Cold War, its central defense clause "Article 5" whereby an attack on one member is considered an attack on all, has only been triggered once; after the 9/11 terrorist attacks on the United States. NATO's involvement in the subsequent War in Afghanistan was a direct result of this, with troops supporting the operation from across the alliance. Although NATO's focus drifted towards counter-insurgency, and the threat from terrorism in this period, its original purpose has become far more important recently. NATO, America, and the War in Ukraine Russia's full-scale invasion of Ukraine in February 2022 shook many European powers out of a creeping complacency that had set in since the end of the Cold War. It led directly to the applications of Sweden and Finland to the alliance in 2022, with the latter joining later that year. The conflict has however also underlined how Europe's security is still underpinned by American military power, with the United States by far the main contributor of military aid to Ukraine. Furthermore, in overall defense spending,the U.S. spends more than the rest of NATO combined. Threats from former U.S. President, and likely 2024 presidential candidate Donald Trump to withdraw from the alliance, therefore put NATO's ability to provide European security at risk in the future.

In 2023, the military expenditure of Colombia accounted for approximately 2.87 percent of the country's gross domestic product (GDP), the highest share in Latin America and the Caribbean. Ecuador is also one of the countries in the region with the highest military budget in relation to its GDP, having spent an estimated sum comparable to 2.3 percent of its GDP on military expenditures.

Graph and download economic data for Federal Government: National Defense Consumption Expenditures and Gross Investment (FDEFX) from Q1 1947 to Q4 2024 about defense, investment, gross, federal, consumption expenditures, consumption, government, GDP, and USA.

In 2022, the U.S. government spent more on healthcare than any other country, at 16.6 percent of GDP. In the same year, U.S. military expenditure was 3.45 percent of GDP. This statistic shows the healthcare and military expenditure as a percentage of GDP in select countries in 2022.

Military Expenditure in Russia increased to 109454.40 USD Million in 2023 from 102366.60 USD Million in 2022. Russia Military Expenditure - values, historical data, forecasts and news - updated on March of 2025.

Israel's projected defense budget for 2025 has increased remarkable, registering 108 billion Israeli shekels (approximately 30.5 billion U.S. dollars), an 80 percent increase relative to 2022. This substantial elevation in defense expenditure mirrors Israel's sharpened focus on military readiness, a shift in national priorities prompted by the Israel-Hamas conflict that began in October 2023. However, there is a slight pullback in the defense allocation compared to 2024, suggesting that Israel's budget planners are anticipating less armed conflict. Conflict driving a surge in government spending The increase in military spending is part of a broader trend of elevated state expenditure due to the war in the Middle East. During the first quarter of 2024, government consumption in Israel reached over 123 billion shekels (about 32 billion U.S. dollars), marking a 27 percent increase compared to the same period in 2023. This bump in public spending has been largely driven by defense, but also welfare and compensation payouts to those impacted by hostilities. Growing national debt The ramifications of increased military spending are evident in Israel's national debt figures. By the first quarter of 2024, general government debt had swelled to over 1.2 trillion Israeli shekels (about 336 billion U.S. dollars). This represented a 10 percent increase in just six months. The escalation in debt levels underscores the financial strain of sustaining heightened military expenditure, which reached 5.3 percent of the country's gross domestic product in 2023.

The Second World War was fought on such a large scale that it became total war in many countries - this is where the war effort is prioritized above all else, and the entire population and economy are mobilized to support all military endeavors. Germany and Japan were committing over 70 percent of their national income to the war effort in its final years.

There were also notable fluctuations that coincided with major events for corresponding powers. These included the UK's mobilization of its defenses in 1940, after Germany took most of Western Europe; the spike in Soviet military spending after Operation Barbarossa in June, 1941; and the U.S. entry into the war following the Pearl Harbor attacks in December, 1941.

In 2023, the military spending worldwide amounted to 2.44 trillion U.S. dollars, which was the highest during the period under consideration. Comparatively, global military spending was at 1.1 trillion U.S. dollars in 2001, and at 1.7 trillion U.S. dollars in 2010, past the peak of the wars in Iraq and Afghanistan. The Russia-Ukraine War The Russia-Ukraine War has been a major driver of more recent military spending increases. From 2021 to 2022, the ratio of Ukraine’s military spending to their GDP increased substantially from 3.8 percent to 33.5 percent. By comparison, this ratio increased in Russia from 3.6 percent in 2021 to only 4 percent in 2022. As a result, large amounts of bilateral aid have gone towards Ukraine. While EU institutions have contributed the most in total, the United States has contributed the most military aid towards Ukraine. Spending by nation Globally, the United States had the largest amount of military spending by large in 2023. The United States spent nearly 916 billion U.S. dollars in 2023 towards defense, compared to 296 billion U.S. dollars and 109 billion U.S. dollars spent by China and Russia respectively. As a percentage of GDP, Ukraine spent the most globally, contributing nearly 37 percent of their GDP to defense, followed by Algeria at 8.2 percent and Saudi Arabia at 7.1 percent.

Military expenditures data from SIPRI are derived from the NATO definition, which includes all current and capital expenditures on the armed forces, including peacekeeping forces; defense ministries and other government agencies engaged in defense projects; paramilitary forces, if these are judged to be trained and equipped for military operations; and military space activities. Such expenditures include military and civil personnel, including retirement pensions of military personnel and social services for personnel; operation and maintenance; procurement; military research and development; and military aid (in the military expenditures of the donor country).

The US Defense Market is Segmented by Armed Forces (Army, Navy, and Air Force) and Type (Fixed-Wing Aircraft, Rotorcraft, Ground Vehicles, Naval Vessels, C4isr, Weapons and Ammunition, Protection and Training Equipment, and Unmanned Systems). The Report Offers Market Size and Forecast for all the Above Segments in Value (USD).

In 2023, China's total expenditure on military services was estimated at 1.67 percent of the national gross domestic product (GDP). This was equivalent to a total spending on the military of around 296 billion U.S. dollars. Total spending on the military was estimated to be significantly higher than the official national defense budget, which was valued at 229 billion U.S. dollars or 1.3 percent of the GDP in 2022.

European military fighting vehicle manufacturers suffer from intense competition from US manufacturers, representing a considerable proportion of imports. Nonetheless, Germany and France generate a substantial proportion of armoured vehicles under the industry's most significant manufacturer, KMW+NEXTER Defense Systems NV. Manufacturers rely on defence spending across Europe and non-NATO members to boost new order volumes. According to the European Commission, general government expenditure in the EU on defence amounted to 1.3 % of GDP in 2021. However, this figure is rising in response to the Russia-Ukraine conflict, boosting revenue prospects. Over the five years through 2024, industry revenue is forecast to drop at a compound annual rate of 4.7% to €5.4 billion. The COVID-19 outbreak caused revenue to plunge as factories temporarily closed amid lockdown measures, resulting in sub-optimal production levels throughout 2020. Industry revenue failed to fully rebound over 2021 and 2022, mainly because of supply-chain disruption, inflating input prices and restricting output volumes. The Russia-Ukraine conflict also invited a flood of armoured vehicle imports from the US, limiting European manufacturers' potential to capitalise on greater demand. In 2024, industry revenue is forecast to drop by 3.2%, thanks to intense competition from US manufacturers.
Over the five years through 2029, industry revenue is expected to expand at a compound annual rate of 3% to reach €6.2 billion. Increased geopolitical tension, namely the Russia-Ukraine and Israeli conflicts, will boost government spending on defence and armoured military vehicles. In February 2023, the UK government outlined plans to spend £242 billion on defence equipment procurement over the next 10 years, including £17.4 billion on land equipment. A progressive and strategic expansion in the European defence budget and the launch of infantry support projects will boost demand for military vehicles and fuel innovation.

Graph and download economic data for Federal government current expenditures: Interest payments (A091RC1Q027SBEA) from Q1 1947 to Q4 2024 about payments, expenditures, federal, government, interest, GDP, and USA.