Military spending, percent of GDP by country, around the world | TheGlobalEconomy.com (2024)

FAQs

What countries spend most GDP on military? ›

In 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.

In 2022, the military expenditure of Colombia accounted for approximately 3.1 percent of the country's gross domestic product (GDP), the highest share in Latin America and the Caribbean.

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.

In total, NATO countries now meet the 2 percent target, together spending 2.71 percent of their GDP on defense.

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.

This list is sourced from the Stockholm International Peace Research Institute (SIPRI) for the year 2020. As of 2021, the top five per capita spenders are Qatar (~$3955), Israel (~$2770), United States (~$2405), Kuwait (~$2085) and Singapore (~$1885).

The United States has the highest military spending of any nation. Its military spending includes all of the Department of Defense's regular activities, war spending, the nuclear weapon program, international military assistance, and other Pentagon-related spending.

Consumption expenditure by households is the largest component of GDP, accounting for more than two-thirds of the GDP in any year. It consists of services, such as medical services and haircuts, nondurable goods like food and clothing, and durable goods like cars or furniture.

ș Total military expenditure accounted for 2.3 per cent of the global gross domestic product (GDP) in 2023. ș The five biggest spenders in 2023 were the United States, China, Russia, India and Saudi Arabia, which together accounted for 61 per cent of world military spending.

Who pays most into NATO? ›

NATO military expenditure (2014-2024)

The United States remains the world's largest military spender by far. In 2014, NATO allies in Europe and Canada invested $250bn, or about 1.43 percent of their collective GDP, to defence.

The United States holds the top position globally, boasting the most potent military force. According to Global Firepower, it has a Power Index of 0.0712, demonstrating unparalleled capabilities in defence technologies and armed forces.

The Declaration prohibits Austria from joining a military alliance, from hosting foreign military bases within its borders, and from participating in a war. Membership of Austria in the European Union (or its predecessor organizations) was controversial due to the Austrian commitment to neutrality.

The 2% defence investment guideline

In 2006, NATO Defence Ministers agreed to commit a minimum of 2% of their Gross Domestic Product (GDP) to defence spending to continue to ensure the Alliance's military readiness.

Iceland is the only Ally that does not have its own military forces. As a founding member, and engaged in a bilateral defence agreement with the United States, Iceland provided facilities and land for NATO installations as its main military contribution to the Alliance until the 1990s.

The World Bank provides a list of all countries and their government spending to GDP ratio. At the top of the list is Lesotho while at the bottom of the list is Chad, both African nations. Many European countries are in the top 10, but that does not signal poor fiscal management.

Using elaborate calculations and accounting techniques, the Central Intelligence Agency estimates that the U.S.S.R. spends between 12 percent and 14 percent of its gross national product on defense.