Global Defence Spending Hits Record $2.89 Trillion

Global military spending hit a record $2.89 trillion in 2024, rising for the eleventh consecutive year, with Europe's rearmament drive carrying much of the momentum even as U.S. defence outlays fell. The data marks a significant shift in who is funding global security, with European nations accelerating military budgets in response to continued uncertainty over U.S. security commitments and the ongoing war in Ukraine. Europe's spending surge is not just a budget line, it reflects a structural rethink of defence self-reliance across NATO members, many of whom had spent decades below the alliance's 2% of GDP target. The U.S. pullback is notable because Washington has long been the world's largest defence spender by a wide margin. A sustained decline in American outlays, combined with rising European and Asian defence budgets, could reshape procurement contracts, defence industry revenues, and transatlantic strategic priorities. Watch for how European defence firms and listed contractors respond to sustained budget increases and whether U.S. industry faces reduced export demand.