Luxembourg (0.62%), Spain (1.09%), Belgium (1.18%), Slovenia (1.26%), and Canada (1.29%) make the bottom of our list of military spending by country for NATO members. While governments that are part of NATO are taking steps to increase their military spending as share of GDP, only seven countries are meeting the target of 2%, and a vast majority are falling well below the goal. This is one of the series of contracts, worth $13.8 billion, that were approved by the parliament last year. German lawmakers approved an order for 35 F-35A fifth-generation fighter jets from Lockheed Martin Corporation (NYSE:LMT), with the first set of planes set to arrive in 2027. Germany, for instance, has announced to commit $112 billion to a special fund to bolster its armed forces and meet NATO’s spending target of 2% over the next few years. This is discussed in detail in our article, 20 Strongest Militaries in Europe. is estimated to have spent more than $821 billion on defense expenditure in 2022 – the highest amount in the world, which is close to 40% of all global spending on defense in that year, and nearly three times higher than the amount spent by China, the world’s second biggest military spender.Īnother significant factor behind more NATO members increasing military spending is that European governments are actively taking measures to strengthen their defense following Russia’s annexation of Crimea in 2014, and the invasion of Ukraine in 2022. According to a report released by NATO this year, the U.S. The United States is the biggest military spender in the world. The change has been driven by calls from the United States urging allies to increase defense spending by country to meet NATO’s target. By 2014, only three allies were meeting this goal. This decision was made to ensure NATO’s military readiness. NATO’s 2% Defense Expenditure Goalĭefense Ministers of NATO countries in 2006 agreed for their countries to commit at least 2% of their GDP on defense expenditure. There is no obligation for allies to contribute, unless Article 5 of the treaty is invoked, which calls for collective defense. Members commit troops and equipment on a voluntary basis. The alliance is sourced through direct and indirect contributions of members. 29 of its members are European, while two of them are North American. NATO, the North Atlantic Treaty Organization, is an intergovernmental alliance between 31 countries with an integrated military command structure. The revenues of General Dynamics Corporation (NYSE: GD) and BAE Systems plc were also significantly higher than in the preceding year. Northrop Grumman Corporation (NYSE: NOC) also announced that its profits in 2022 had risen by 2.5% compared to 2021. Raytheon Technologies Corporation (NYSE: RTX)’s net earnings for the year ended March 2023 were $14.1 billion – an increase of 8.90% from last year. ![]() Lockheed Martin Corporation (NYSE: LMT) reported net sales of $66 billion and a net profit of $5.7 billion in 2022. The surge in spending has created a boom for the armament manufacturing industry. ![]() These statistics were published by the Stockholm International Peace Research Institute (SIRPI) in April this year. Military spending from NATO members increased by 0.9% from 2021, to a total of $1.2 trillion in 2022. The three largest military spenders, the United States, China, and Russia, accounted for 56% of the world total. Global military spending has reached a record high with $2.2 trillion spent on defense expenditure in 2022, with Europe seeing its steepest rise in 30 years amid Russia’s invasion of Ukraine. To skip our detailed analysis, head directly to NATO Military Spending by Country: Top 5 Countries. In this article, we look at the military spending by country and create a list of the top 20 NATO countries that spend the highest on defense expenditure.
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