Increasing tension and uncertainty in the strategic environment and the changing nature of alliances and global conflict has been characterised by some as a ‘pre-war’ era that has triggered a rapid and significant increase in national defence spending worldwide. This paper outlines global defence spending and Australia’s defence spending. The paper lists the top 15 countries by military expenditure for 2023 and 2024.

Defence spending as a percentage of GDP is often used as a measure of government policy on defence. However, economic fluctuations can distort the figure. Nonetheless, percentage of GDP remains an internationally recognised benchmark of the priority given to defence spending. Australia’s inaugural 2024 National defence strategy reintroduced the measure of defence spending as a percentage of GDP with a promise to increase defence investment to 2.4% by 2033–34. 

Given the deteriorating strategic environment, the lack of public interest in defence-related issues (apart from major military acquisitions being delivered over budget and schedule) will continually challenge parliamentary and public debate on defence and security.

Key findings

• A 37% global increase in military spending over the last decade is calculated. This record may be exceeded in 2025.
• The top five highest-spending countries in 2024 accounted for 60% of the world’s total defence spending.
• Despite the dire strategic outlook, there appears to be little public appetite for greater defence spending.