The ongoing war in Ukraine saw both Russia and Ukraine increase their military spending, with each recording the highest share of government spending allocated to the military.
Russia’s spending increased by 5.9 percent to $190 billion, equivalent to 7.5 percent of GDP.
Ukraine, meanwhile, increased spending by 20 percent to $84.1 billion – 40 percent of GDP.
Despite persistent tensions in the Middle East, spending in the region grew by only a modest 0.1 percent to $218 billion.
While most countries in the region increased spending, Israel and Iran actually recorded declines.
In Iran, it fell 5.6 percent to $7.4 billion, but this was mainly due to high annual inflation of 42 percent. In nominal terms, spending actually increased.
The researchers reported that Israel’s 4.9 percent decline in spending after the January 2025 ceasefire agreement to $48.3 billion reflects less intensity in the Gaza war, while Israeli spending is still 97 percent higher than in 2022.