The latest information from the Stockholm International Peace Research Institute (SIPRI) shows a global rise in military spending to USD 1,981 billion in 2020, despite the Covid-19 pandemic. This 2.6% increase in world military spending occurred even as the global GDP contracted by 4.4% due to economic impacts of the pandemic.
Global Military Spending Scenario
In 2020, military spending, as a percentage of Gross Domestic Product (GDP), reached a global average of 2.4%, up from 2.2% in 2019. The five nations with the highest military expenditure in 2020 were the United States, China, India, Russia, and the United Kingdom, accounting for 62% of the global total.
United States and China: The Leading Spenders
In the United States, 2020 marked the third consecutive year of military expenditure growth, following seven years of continuous reductions. This surge reflects growing concerns over perceived threats from strategic competitors such as China and Russia. China’s military spending has shown uninterrupted increases for 26 consecutive years, the longest streak of any country on the SIPRI Military Expenditure Database.
Military Burden Increases in NATO Nations
Almost all members of the North Atlantic Treaty Organization (NATO) saw an increase in their military burden in 2020. The nations with the largest increases in military burden among the top 15 spenders were Saudi Arabia, Russia, Israel, and the United States.
Regional Military Expenditure Trends
Across Europe, military spending increased by 4.0% in 2020, with Germany and France ranking seventh and eighth globally. In Asia and Oceania, India, Japan, South Korea, and Australia saw increases in their military expenditures in 2020 and over the decade from 2011 to 2020. Sub-Saharan Africa saw an increase in military spending of 3.4% in 2020. On the other hand, military expenditure in South America fell by 2.1% with a significant 3.1% drop in Brazil’s spending.
Middle Eastern Countries Cut Military Spending
The combined military spending of the 11 Middle Eastern nations for which SIPRI has data fell by 6.5% in 2020. Among these, eight members of the Organization of the Petroleum Exporting Countries (OPEC), including Angola, Saudi Arabia, and Kuwait, reduced their military expenditure significantly.
India: The Third Largest Military Spender
India was the third largest military spender in the world in 2020, behind only the United States and China. With a military expenditure of USD 72.9 billion, India accounted for 3.7% of the global total. This 2.1% increase from 2019 was largely due to ongoing conflict with Pakistan and heightened border tension with China. The continuous confrontation with China in Eastern Ladakh has led to several emergency arms purchases since May 2020. Furthermore, India’s weak domestic defence-industrial base puts it in a vulnerable position as the world’s second-largest arms importer, trailing only Saudi Arabia.
About Stockholm International Peace Research Institute
SIPRI is an independent international institute established in 1966 in Stockholm, Sweden. It is dedicated to research into conflict, armaments, arms control, and disarmament. Based on open sources, the institute provides data, analysis and recommendations to policymakers, researchers, media, and the interested public.
