GreekReporter.comGreek NewsGreece Raises Defense Spending to $8.4B as Global Military Budgets Climb

Greece Raises Defense Spending to $8.4B as Global Military Budgets Climb

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Greece increased its defense spending to $8.4 billion in 2025, up 5.6% in real terms from the previous year, according to SIPRI. Credit: Alexandros Vlaxos / AMNA

Greece increased its defense spending to $8.4 billion in 2025, marking a 5.6% rise in real terms from the previous year, according to data from the Stockholm International Peace Research Institute (SIPRI).

The figure places Greece 34th globally in military spending. More importantly, defense expenditure reached 3% of GDP, keeping the country among the highest spenders in both NATO and the European Union in relation to the size of its economy. While many European governments are now accelerating defense budgets after years of lower investment, Greece has remained consistently above the NATO benchmark of 2% of GDP.

Turkey’s defense spending reaches $30 billion

Turkey also expanded its military budget in 2025, with expenditure reaching $30 billion, up 7.2% from 2024. Compared to 2016, Turkey’s military spending has increased by 94%, highlighting the scale of Ankara’s long-term defense buildup.

Turkey ranks 18th worldwide in military expenditure, unchanged from 2024, and accounts for one percent of total global military spending. As a share of GDP, however, Turkey’s military burden stood at 1.9% in 2025, slightly below the 2% level recorded in 2016.

A key part of Turkey’s defense trajectory is the growing role of its domestic arms industry. Allocations to the special fund supporting the Turkish defense sector rose by 25% year-on-year and represented 22% of the country’s total military expenditure in 2025.

Global military expenditure hits $2.887 trillion

Worldwide military expenditure reached $2.887 trillion in 2025, marking the eleventh consecutive year of growth. In real terms, spending rose by 2.9% from 2024, while the share of global GDP devoted to military budgets reached its highest level since 2009.

The United States, China, and Russia remained the world’s dominant military spenders, with combined expenditure of $1.48 trillion. The United States spent $954 billion, still the largest figure globally, although this represented a 7.5% decrease from 2024. The decline was linked mainly to the absence of a new US aid package for Ukraine in 2025 after Washington had approved $127 billion in support over the previous three years.

For 2026, however, the US Congress has approved defense funding exceeding $1 trillion, reflecting new military requirements connected to the war with Iran. China spent an estimated $336 billion in 2025, continuing a three-decade pattern of annual defense increases. Russia’s military expenditure rose by 5.9% to $190 billion, equal to 7.5% of GDP.

Europe posts one of the sharpest increases

Europe recorded one of the strongest increases in military spending in 2025. SIPRI’s regional figure, which includes Russia and Ukraine, showed expenditure rising by 14% to $864 billion. The war between Moscow and Kyiv remained the central driver of the increase, while a partial US pullback also pushed European governments to take greater responsibility for their own defense.

Ukraine raised its military expenditure by 20% to $84.1 billion, equivalent to 40% of GDP, underscoring the extraordinary pressure the war has placed on Kyiv’s public finances.

Germany, now the fourth-largest military spender in the world, increased its defense budget by 24% to $114 billion. Spain posted an even steeper rise, increasing spending by 50% to $40.2 billion and surpassing two percent of GDP for the first time since 1994.

Middle East defense spending grows only slightly

Despite continued instability, military spending in the Middle East rose only marginally in 2025, increasing by 0.1% to $218 billion. Iran’s military expenditure fell by 5.6% in real terms to $7.4 billion despite an increase in nominal terms. The drop was mainly linked to high inflation, which stood at 42%.

Israel’s military spending declined by 4.9% to $48.3 billion, a decrease associated with a temporary de-escalation in the Gaza war, including several weeks of ceasefire. Even so, Israel’s 2025 military expenditure remained 97% higher than in 2022.

Asia-Pacific rises as China drives regional rearmament

In Asia and Oceania, military expenditure reached $681 billion, up 8.5% from 2024. It was the region’s largest increase since 2009. China’s continued military expansion was the main driver, but the rise also reflected the response of neighboring states that view Beijing’s buildup as a strategic challenge.

Japan increased military spending by 9.7% to $62.2 billion, equal to 1.4% of GDP, its highest level since 1958. Taiwan raised expenditure by 14% to $18.2 billion.

The 2025 figures point to a world moving deeper into a new defense-spending cycle, with Greece maintaining one of NATO’s highest military burdens, Turkey accelerating its defense-industrial ambitions, and major powers continuing to shape the global arms race.

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