The world is seeing an increase in military spending, driven by ongoing conflicts, geopolitical tensions, and the need for greater defense capabilities. According to the Stockholm International Peace Research Institute (Sipri), global military spending rose by 6.8% in 2023, the steepest increase in 15 years. This increase is particularly significant in Europe, where countries are investing more to counter the Russian threat and reduce dependence on Washington.
In Ukraine, conventional conflicts between state actors have changed perceptions as governments focus more on defense. In Europe, military spending has increased by 16% in a single year, reflecting a commitment to invest more in defense. European countries are facing a challenging situation as the Russian invasion of Ukraine continues despite significant military investment by Ukraine.
Military tensions have escalated in the Middle East, with increased spending in Israel and Iran. Israel’s military investment rose by 24% in 2023 especially following the Gaza war. Iran has also increased funding for its Revolutionary Guard and drone development industry. Russia, which is third-largest investor, has dedicated a significant portion of its GDP to military spending since dissolution of Soviet Union reaching highest level yet.
NATO countries are increasing defense spending with several reaching the goal of 2% of GDP in 2023 despite few reduced funding overall military spending around the world is on the rise
