00:00The world is not slowing down its wars, it is paying for them.
00:04In 2025, global military spending has exploded to nearly 2.9 trillion dollars,
00:11the highest ever recorded.
00:13And every continent is now part of a quiet arms race,
00:17driven by fear, conflict and a growing sense that the next global crisis may already be taking shape.
00:25This is not just a rise in defense budgets,
00:28this is the world preparing for what comes next.
00:36Global military spending has reached a historic high,
00:40nearly 2.9 trillion dollars in 2025,
00:44marking the 11th consecutive year of growth.
00:47This surge reflects a world increasingly shaped by insecurity, war and rearmament.
00:53At Zipri, we recorded the world with an expenditure of 2,887 billion US dollars,
01:01so just short of 2.9 trillion US dollars.
01:04That marked the 11th year through which we saw an increase.
01:09And that happened despite the major players, so the US, despite the US recording a decrease.
01:16According to defense researchers, spending rose 2.9% compared to 2024,
01:23despite a reduction in US military expenditure.
01:27But the decline in the US was more than offset by sharp increases in Europe and Asia.
01:33The United States, China and Russia together,
01:36accounted for more than half of global military spending.
01:40Combined, they spent 1.48 trillion dollars.
01:44The United States remained the world's largest spender at 954 billion dollars in 2025,
01:52but this marked a 7.5% decrease compared to 2024.
01:56The drop was largely due to no new financial military aid to Ukraine.
02:02Over the past three years,
02:04Washington had already pledged 127 billion dollars in military support to Kyiv.
02:11However, this decline may be temporary.
02:14The US Congress has already approved over 1 trillion dollars in 2026 military spending,
02:20which could rise to 1.5 trillion dollars in 2027 if President Donald Trump's budget proposal is adopted.
02:29So in 2025, the US decreased its total military spending,
02:33and that's because it halted, it halted, it stopped its military financial aid to third countries,
02:41especially to Ukraine.
02:43That, though, doesn't mean that the US stopped investing in its own military capabilities.
02:47It's still investing in its own conventional and nuclear armament.
02:52And in the long term, we saw how there are pledges to spend up to 1.5 trillion US dollars
02:58in the coming years.
03:00Europe saw the biggest regional increase.
03:03Military spending in Europe, including Russia and Ukraine, rose 14% to 864 billion dollars.
03:11This rise is being driven by two major factors.
03:15The ongoing war in Ukraine reduced US engagement in European defense.
03:21European nations are now being pushed to take greater responsibility for their own security.
03:27Germany, the fourth largest global spender,
03:30increased its defense budget by 24% to 114 billion dollars.
03:35Spain recorded an even sharper jump of 50% to 40.2 billion dollars,
03:42crossing 2% of GDP for the first time since 1994.
03:47In Europe, especially in European NATO members, we saw massive increases in 2025.
03:53And that's given the trap perception stemming from the war in Ukraine,
03:57but also the disengagement of the US for what concerns the European security.
04:02For example, Spain increased by 50% its military expenditure compared to 2024,
04:09thus mostly to higher allocation to procurement.
04:13But also Germany, which is the fourth highest spender in the world,
04:17increased by almost a quarter compared to the previous year.
04:21The Ukraine war continues to reshape global defense priorities.
04:26Russia increased spending by 5.9% to 190 billion dollars.
04:32Equal to 7.5% of its GDP.
04:36Ukraine raised spending by 20% to 84.1 billion dollars,
04:42a staggering 40% of its GDP.
04:45If we look at 2026, we're seeing how Russia is waiting,
04:50well, it's likely to profit from increased oil prices,
04:54whereas Ukraine is waiting for a EU loan.
04:57So it means that both countries will have likely more money to spend
05:02and potentially to increase even further their military spending.
05:06Despite ongoing tensions, Middle East military spending rose only 0.1%,
05:12reaching 218 billion dollars.
05:15Most countries increased spending, but Israel and Iran saw declines.
05:21Iran's spending fell 5.6% to 7.4 billion dollars,
05:26largely due to 42% inflation,
05:29although in real terms, spending actually increased.
05:32Israel's spending dropped 4.9% to 48.3 billion dollars,
05:39reflecting reduced intensity in the Gaza conflict
05:42after a January 2025 ceasefire.
05:45However, Israel's military spending remains 97% higher than in 2022.
05:52So Iran allocated more than previous years on drone and missile production,
05:57but due to the economic situation, that was recorded as a decrease.
06:02On top of that, we record the fact that Iranian military expenditure,
06:10official military expenditure, might be an underestimate,
06:13since Iran also has some off-budget mechanisms to finance its military.
06:19Asia and Oceania recorded the fastest regional growth,
06:23reaching 681 billion dollars, an 8.5% increase,
06:28the largest jump since 2009.
06:31China, the dominant regional power,
06:35spent an estimated 336 billion dollars in 2025,
06:40continuing a three-decade-long rise in defense spending.
06:44Other nations are reacting to growing threat perceptions.
06:47Japan increased spending by 9.7% to 62.2 billion dollars,
06:55reaching 1.4% of GDP, its highest level since 1958.
07:00Taiwan raised spending by 14% to 18.2 billion dollars.
07:07Across the world, the military burden,
07:09the share of global GDP spent on defense,
07:12has now reached its highest level since 2009.
07:17Experts say this reflects a world that feels increasingly insecure
07:21and is responding by accelerating military investment.
07:26The trend we saw marks another year of wars and increased tensions around the world.
07:32And that's also shown by the fact that the military burden,
07:38so the share of global GDP dedicated to the military,
07:43is the highest we've seen since 2009.
07:46So everything points at a world that feels less secure
07:51and is spending on its military to compensate for the global landscape.
07:56From Europe to Asia, from Ukraine to the Middle East,
07:59the message is clear.
08:01The world is not just witnessing conflict,
08:03it is preparing for more of it,
08:05and it is spending record amounts to do so.
08:14For more information, visit www.fema.gov.au
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