Daily Management Review

Following A 7% Increase, Global Military Expenditures Reached An All-Time High In 2023, Claims A Report


Following A 7% Increase, Global Military Expenditures Reached An All-Time High In 2023, Claims A Report
The Stockholm International Peace Research Institute claimed on Monday that there has been a "global deterioration in peace and security" as military spending has hit a record high of $2.4 trillion in 2023.
The institute stated in a report on military spending patterns that the number represented a 6.8% increase from 2022 and the biggest year-over-year increase since 2009.
Senior researcher for SIPRI's military expenditure and arms production programme Nan Tian stated in a statement that "the unprecedented rise in military spending is a direct response to the global deterioration in peace and security."
According to the report, military spending has increased for nine years running, and it increased globally for the first time since 2009. This was connected to the conflict in Ukraine, as well as to other events including a resurgence of organised crime and gang violence in Central America and the Caribbean and rising tensions in the Middle East.
Top of the list of nations that raised military spending the most in 2023 were Russia and Ukraine, both of which are engaged in current hostilities. Their increases came in at 51% and 24%, respectively. Russia is the third-biggest military spender in the world, after the United States and China, with an estimated $109 billion in military spending, significantly more than that of Ukraine.
The research pointed out that given Russia's highly opaque financial system and the fact that corporations, individuals, and organisations supplement the budget allotted for military spending, this figure is probably an underestimate.
According to the research, Ukraine spent over $64.8 billion on its military, which is about 59% of what Russia spent on the same purpose but accounts for 37% of the country's GDP. The amount does not account for the tens of billions of dollars in military assistance that Kyiv receives, which helps to close the difference between its costs and Russia's.
According to a statement from Lorenzo Scarazzato, a military expenditure and arms production expert at SIPRI, the conflict between Russia and Ukraine also increased military spending abroad and caused nations to reevaluate their security postures.
“This shift in threat perceptions is reflected in growing shares of GDP being directed towards military spending, with the NATO target of 2 per cent increasingly being seen as a baseline rather than a threshold to reach,” he said.
The former president and front-runner for the US presidency this year, Donald Trump, issued a warning in February that NATO members who fall behind on their due dates will not be shielded from Russian assaults. The remarks caused a political uproar among allies and ultimately led to NATO Secretary-General Jens Stoltenberg acknowledging that certain nations are not receiving adequate financing.
According to the SIPRI analysis, Poland's military spending increased by 75% in 2023, while costs in Germany and the United Kingdom increased by 9% and 7.9%, respectively. The country that spends the most on its military, the United States, saw a 2.3% increase in spending on this account in 2023, reaching $916 billion.
Based on estimated numbers, China, the country that spends the most on its military behind the United States and Russia, budgeted an estimated $296 billion, approximately 6% higher than the previous year.
According to the research, tensions in the Middle East have had a major impact on the total increase in military spending worldwide. Israel, which is likewise embroiled in conflict, had a 24% increase in spending to $27.5 billion.
“The spending increase was mainly driven by Israel’s large-scale offensive in Gaza in response to the attack on southern Israel by Hamas in October 2023. Israel’s monthly military expenditure has risen substantially since the start of the war in Gaza: it went up from an average of $1.8 billion per month before October to $4.7 billion in December 2023,” the report said.