Still, global defense spending as a percentage of the total global economy declined by 0.1 percentage point. The global economy grew even faster than defense spending in 2021, as a result of all the economic stimulus measures related to the corona pandemic. Global defense spending still accounted for 2.2 percent of the total global economy in 2021, according to SIPRI.
The five countries that spent the most money on defense in 2021 were the United States, China, India, Great Britain and Russia. Russia’s spending in preparation for the war in Ukraine rose by 2.9 percent to 65.9 billion dollars (61 billion euros). Russian defense spending thus amounted to 4.1 percent of gross domestic product. The question is whether Russia can continue to afford such high military expenditures in the near future. The international sanctions, imposed because of the war in Ukraine, hit Russia’s economy hard.
On the other hand, many NATO member states have announced that they will increase their defense spending because of the war in Ukraine. SIPRI therefore expects the global increase to continue in the coming years.
The United States spent the most money on defense in 2021: 801 billion dollars (742 billion euros). That was equivalent to 3.5 percent of the US gross domestic product that year. In 2020, defense spending in the US still accounted for 3.7 percent of the country’s total economy.