The Stockholm International Peace Research Institute (SIPRI) released a summary of global military spending for 2023, with worldwide expenditure hitting an all-time high.
In 2023, global military spending increased for the ninth consecutive year, reaching a total of $2.44 trillion. The 6.8% increase in 2023 was the sharpest year-on-year rise since 2009 and brought global spending to the highest level ever recorded by SIPRI.
Average military expenditure as a share of government spending rose by 0.4 percentage points to 6.9% in 2023. Global military spending per person was the highest since 1990 standing at $306.
The increase in global military spending in 2023 is attributed to the ongoing war in Ukraine and escalating geopolitical tensions in Asia, Oceania and the Middle East.
Global military spending is highly concentrated among a relatively small group of states. The two largest spending nations, the United States and China, accounted for about half of global military spending in 2023, according to SIPRI.
Together, the top 10 accounted for nearly three-quarters (74%) of the global total in 2023, or $1,799 billion, an increase of $105 billion from the previous year. All countries in the top 10 increased their military spending in 2023.
Ukraine had the largest percentage increase among the group. Its military spending increased 51% to $64.8 billion and moved from the 11th highest spending in 2022 to the 8th highest in 2023. Military spending as a share of GDP increased by 11 percentage points to 37%.
Among the top 10, the share of military expenditure in government spending was highest in Ukraine (58%), followed by Saudi Arabia (24%) and Russia (16%). The most notable increases in 2023 were in Ukraine (+19 percentage points) and Russia (+3.2 percentage points).
US military spending in 2023 was $916 billion, up 2.3% from 2022 and 9.9% from 2014. The US remains the world’s largest contributor, allocating 3.1 times more to the military than the second largest contributor, China.
Military aid to Ukraine was a widely discussed topic in the US in 2023. Appropriations beyond the original US Department of Defence budget were the main sources of US military spending related to Ukraine in 2023. They totalled $35.7 billion in 2023, of which $25.4 billion was for military assistance.
The remaining $10.3 billion in Ukraine-related appropriations included funds to support European allies and US European Command operations, as well as to increase US munitions production capacity to resupply supplies sent to Ukraine.
China, the world’s second-largest source of military spending, allocated about $296 billion for the military in 2023, up 6.0% from 2022. China’s military spending accounted for 12% of global spending and 50% of spending in Asia and Oceania.
In addition to being the largest contributor in Asia and Oceania, China is a major driver of spending trends elsewhere in the region, as many of its neighbours perceive China’s growing military power as a reason to bolster their military capabilities.
Russian military spending in 2023, estimated at $109 billion, was 24% higher than in 2022 and 57% higher than in 2014. In 2023, Russia’s military spending was equivalent to 5.9% of GDP and 16% of total government spending, the highest level recorded by Russia since the collapse of the Soviet Union.
The increase in Russian military spending in 2023 was largely fuelled by Russia’s economic performance, which exceeded expectations despite sanctions on oil and gas revenues.
In the draft budget for 2023, released in September 2022, Russia increased the amount allocated to “national security and public order” by 50% compared to 2022. Based on the draft state budget for 2024-2026 published in 2023, Russian military spending is expected to continue to increase in the coming years.
Despite the large amounts of military aid promised by the West to Kyiv last year, Ukraine’s armed forces are still underarmed and understaffed. They are woefully short of ammunition and air defence systems.
Over the past year, when the US Congress blocked the military aid, the Europeans were expected to make up the difference, even though their military-industrial complexes are not suitable for military production. However, Western military officials have stressed that it is difficult to know exactly how much Russia spends on war because of limited access to information on the country’s defence spending.
“The unprecedented rise in military spending is a direct response to the global deterioration in peace and security,” Nan Tian, a senior SIPRI researcher, stated.
States are prioritising military strength but risk an action-reaction spiral in the increasingly volatile geopolitical and security landscape.
