Global defence spending rises amid geopolitical tensions

By Linda Bordoni 

The International Institute for Strategic Studies (IISS) annual Military Balance 2026 report shows that while the pace of increase in military spending for defence has moderated compared to previous years, Europe and parts of Asia recorded significant rises, reflecting ongoing security concerns and shifting regional priorities

The report reveals that global military expenditure continued its upward trajectory in 2025, reaching an estimated USD 2.63 trillion. This, it notes, represents a 2.5 % increase over the previous year, though the pace of growth remains slower than the sharp rises seen in the immediate aftermath of Russia’s invasion of Ukraine.

The report also highlights a divergent picture across regions. Europe’s defence spending surged by around 12.6 %, significantly outpacing the global average, as governments responded to persistent security concerns and renewed commitments by NATO allies to bolster their militaries. Germany played a leading role in this increase, contributing substantially to Europe accounting for more than 21 % of global defence spending in 2025, up from 17 % in 2022.

In contrast, growth in the United States’ defence budget temporarily tapered in 2025, even as proposals under the current administration aim to push U.S. military spending beyond USD 1 trillion in 2026 with initiatives such as the proposed “Golden Dome” missile defence programme.

Russia’s defence spending continued to increase in absolute terms but at a much slower rate than in previous years, a marked change after substantial rises earlier in the conflict with Ukraine.

Across Asia, defence budgets also expanded, with China maintaining a dominant share - estimated at nearly 44 % of regional military expenditure in 2025 - and other states in the region raising their own defence expenditure amid security competition.

Spending in the Middle East and North Africa region also rose, reflecting ongoing regional tensions and state decisions to strengthen military readiness.

Pope’s appeal to limit military spending

Pope Leo XIV has warned against the use of large funds in armed conflicts, stressing that these resources should be used to strengthen health systems.

Speaking to the Pontifical Academy for Life in February, the Pope argued that, in a scenario characterised by wars that absorb economic, technological and logistical capacities, it is essential to concentrate efforts on protecting life and ensuring medical care and indicated that clashes affect civil structures, including hospitals, and defined them as a direct attack on public health.

He called for the reactivation of multilateral mechanisms capable of mediating and preventing tensions, reiterating that health is a universal right whose access cannot be limited.