According to the latest data published by the Stockholm International Peace Research Institute (SIPRI) in its Trends in World Military Expenditure, 2022, military spending worldwide reached a new high last year as Russia’s invasion of Ukraine fueled the largest annual increase in military spending across Europe three decades after the end of the Cold War.
SIPRI reported that the global military expenditure rose by 3.7% in real terms in 2022 to $2240 billion. This marks an all-time high, with worldwide expenditure increasing for the eighth consecutive year. Russian and Ukrainian spending accounted for the majority of the increased spending.
Military Spending in Russia-Ukraine War
Russia invaded and seized Ukraine’s Crimean Peninsula in 2014 and supported separatist rebels in the east before launching a full-scale invasion in February 2022. Growing tensions between the two nations spurred European countries to strengthen their defences. Moscow claims the “special military operation” is required to defend the country from the hostile and aggressive West. According to Ukraine and its allies, Russia is fighting an unprovoked war to seize territory.
In 2022, Russian military spending grew by an estimated 9.2% to around $86.4 billion. According to Russian figures disclosed in late 2022, spending on national defence — a major component of Russian military expenditure — was already 34% more in nominal terms than in budgetary estimates set out in 2021.
Ukraine’s military budget increased to $44 billion in 2022. At 640%, this is the biggest single-year rise in a country’s military expenditure recorded in SIPRI statistics. As a result of this increased military spending and the economic damage caused by the war, Ukraine’s military burden increased to 34% of GDP in 2022, up from 3.2% in 2021.
With $877 billion in military spending last year—39% of all military spending worldwide—the #US continued to lead the world in military spending, SIPRI reported. https://t.co/xvLAKdMESE
— Al Mayadeen English (@MayadeenEnglish) April 24, 2023
US Remains World’s Largest Military Spender
The US continues to be the world’s largest military spender. According to the data published by SIPRI on global military expenditure, the three largest spenders in 2022 — the United States, China, and Russia — accounted for 56% of the global total.
By 2022, US military spending had increased to $877 billion, approximately 39% of total global military spending and three times more than that of China, the second-largest spender.
Nan Tian, a senior researcher at SIPRI, said that the increase was largely driven by “the unprecedented level of financial aid provided to Ukraine.” The think tank estimates that US financial and military help to Ukraine reached $19.9 billion in 2022.
Despite being the highest amount of military aid given to a single beneficiary by any nation since the Cold War, it accounted for just 2.3% of total US military spending.
The US allocated $295 billion on military operations and maintenance in 2022, $264 billion on procurement and R&D, and $167 billion on military personnel.
China, Japan Raise Military Spending in Asia
China remains the world’s second-largest military spender, with a reported $292 billion allocated in 2022. This was the 28th straight yearly rise, and 4.2% higher than the 2021 budget.
Meanwhile, Japan increased its military spending in 2022 by 5.9% to $46 billion. Japanese military spending has reached its highest level since 1960. Accordingly, Xaio Liang, a researcher with SIPRI’s Military Expenditure and Arms Production Programme, explained that “Japan is undergoing a profound shift in its military policy.”
Japan and China led the way in Asia and Oceania military spending, which amounted to $575 billion. According to SIPRI, military expenditure in the region has been increasing since at least 1989.
Military expenditure in Europe saw its steepest year-on-year increase (⬆️13%) in at least 30 years. Ukraine’s🇺🇦 military spending rose by 640% to $44 billion in 2022 ➡️ https://t.co/CUMd3854kT
— SIPRI (@SIPRIorg) April 24, 2023
Explore the interactive map of Europe ➡️ https://t.co/3yjLK4aWVJ pic.twitter.com/ImQ7Beva7C
Military Expenditure by Central and Western Europe
Central and Western European countries spent $345 billion on their military forces in 2022. Spending by these nations was 30% more than in 2013 and, for the first time in real terms, exceeded that in 1989, when the Cold War was ending. The countries with the sharpest increase were Finland (+36%), Lithuania (+27%), Sweden (+12%), and Poland (+11%).
Notable Developments
India’s military budget was the fourth largest in the world, at $81.4 billion. It was 6% higher than in 2021.
NATO nations’ military spending was $1232 billion in 2022, a 0.9% increase over 2021.