Russia’s war of aggression against Ukraine hits the arms market with full force. In Europe, imports of heavy weapons such as tanks, fighter jets and submarines have risen by 47 percent over the past two five-year periods, and by European NATO countries by as much as 65 percent. That’s according to a new report that Stockholm Peace Research Institute Sipri has now published.
Worldwide they rose by 3.7 percent to a total of 2.24 trillion dollars. Europe saw the strongest year-over-year increase in at least 30 years. The US, China and Russia accounted for 56 percent of total spending.
“The steady increase in global military spending in recent years is a sign that we live in an increasingly insecure world,” says Dr. Nan Tian, Senior Researcher at Sipri.
States have increased their military strength in response to a deteriorating security situation, which they believe will not improve in the near future. Six developments have led to the new all-time high.
1. Russia’s war is more expensive than expected
Over the past year, Russia had to adjust its budget again. According to Sipri, spending in the armed forces category, which includes the procurement of military equipment and maintenance, rose again by 52 percent ($33.2 billion).
Lucie Béraud-Sudreau is Director of the Military Expenditure and Defense Production Program at Sipri. Her research focuses on Europe and Asia.
“The difference between Russian budget plans and actual military spending in 2022 suggests that the invasion of Ukraine cost Russia far more than it expected,” said Lucie Béraud-Sudreau, director of the military spending and defense production program Sipri, the daily mirror.
2. Ukraine’s spending increases by 640 percent
Military spending in Ukraine reached $44 billion last year. At 640 percent, this was the highest global increase in one year ever recorded in Sipri data. As a result of high spending and war-related damage to the Ukrainian economy, the military burden (military spending as a percentage of gross domestic product) rose from 3.2 percent in 2021 to 34 percent of GDP in 2022.
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3. Europe’s fear of Moscow
The military expenditures of the Central and Western European countries amounted to 345 billion dollars. This is the first time they have exceeded the figures for 1989, when the Cold War ended, and were 30 percent higher than ten years ago.
“Russia’s attack on Ukraine had an immediate impact on military spending decisions in Central and Western Europe,” explains Dr. Diego Lopes da Silva, senior researcher at Sipri, the daily mirror. Some governments have even launched multi-year spending plans. “As a result, we can expect military spending in Central and Western Europe to continue to increase in the coming years.”
Lorenzo Scarazzato is an expert at Sipri and primarily researches Europe’s armaments industry.
Some of the sharpest increases since the start of the war have been registered in Finland (+36 percent), Lithuania (+27 percent), Sweden (+12 percent) and Poland (+11 percent) – all countries close to Russia. Arms expert Lorenzo Scarazzato says that concerns about Russian aggression have been around for some time. “Many former Eastern Bloc countries have more than doubled their military spending since 2014, the year Russia annexed Crimea.”
4. Tensions in East Asia: China and Japan are increasing
Asia and Oceania spent $575 billion on military and defense, up 45 percent from 2013.
China in particular stands out: the military expenditures of the People’s Republic have been rising continuously for 28 years. With an estimated 292 billion dollars, it remains in second place in the international ranking. That is 4.2 percent more than in 2021 and 63 percent more than in 2013.
Xiao Liang analyzes data on the defense industry for Sipri. His research areas include the relationship between military and development aid and regional trends in the Asia-Pacific region.
Japan’s military spending increased by 5.9 percent between 2021 and 2022, reaching the highest level since 1960 at 46.0 billion. One reason for this is the new national security strategy, which was published in 2022. It contains ambitious plans to increase military capabilities over the next decade to counter growing threats from China, North Korea and Russia.
“Japan is undergoing a profound change in its military policy,” says researcher Xiao Liang. “The country’s post-war restrictions on its military spending and capabilities appear to be easing.”
5. Saudi Arabia puts money into the military for oil
In Saudi Arabia, spending in 2022 rose for the first time since 2018. King Salman spent $75 billion on his military. Spending fell by 23 percent between 2015 and 2022. According to Sipri, these volatile developments are at least partly due to fluctuations in oil prices on the international market.
6. USA is and will remain the largest investor
At 39 percent, the US military and defense budget is the largest in the world. President Joe Biden’s administration is spending $877 billion, three times as much as China, the second largest donor. The researchers at Sipri write: “Even with persistently high inflation, the United States will remain the country with the highest military spending in the world in the coming years.”
