Saturday, November 14, 2026

What percent of GDP is used for "defense" by the leading national economies?

 The world’s leading national economies generally allocate between 1.1% and 3.1% of their Gross Domestic Product (GDP) to defense, though major geopolitical powers engaged in active conflict spend significantly higher shares. [1]

According to the Stockholm International Peace Research Institute (SIPRI) and TheGlobalEconomy.com, here is how the largest global economies compare based on the most recent full-year data (2025):
Defense Spending by Leading National Economies (2025)



Key Context & Trends
  • The United States vs. G7 Allies. While the U.S. accounts for roughly a third of all global military spending in raw dollars, its defense burden sits at 3.1% of GDP—well below its Cold War levels of 8% to 10%, yet still noticeably higher than all other G7 economies. [1, 2, 3]
  • China's Proportional Growth. Despite having the world's second-largest military budget in raw dollars ($336 billion), China's defense spending remains steady at roughly 1.7% of GDP because its military budget has largely grown at the same pace as its overall economy. [1, 2]
  • European & NATO Realignment. Driven by heightened security concerns in Europe, major EU economies like Germany (2.3%) and France (2.0%) met or exceeded NATO's baseline 2% benchmark. Following a June 2025 summit, NATO members committed to gradually raising combined defense and security-related spending toward 5% of GDP by 2035. [1, 2]
  • Wartime Outliers. Outside of peacetime major economies, nations facing active conflicts or acute regional threats allocate far larger shares of their economic output to defense—most notably Ukraine (39.6%), Israel (7.8%), Russia (7.5%), and Saudi Arabia (6.5%). [1]


Note...
The contrast of the top four and bottom four countries is dramatic. China - with the world's largest GDP - dedicates the lowest proportion of that income to defense.
(For some reason Brazil's numbers failed to copy/paste -- 1.1% Military and $23.9B Defense)

1.1%


$23.9B


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