Europe's rearmament push drives global military spending to record $2.89 trillion despite U.S. pullback [CNBC]
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Source: CNBC
The U.S. kept its spot as the world's top defense spender, splurging $954 billion in 2025 alone. Defense stocks rallied globally in 2025 as governments expanded military budgets. In this article Europe ramped up military spending in 2025 — a longstanding demand of U.S. President Donald Trump — helping drive global defense outlays to a staggering $2.89 trillion, according to the Stockholm International Peace Research Institute Major rearmament programs in Asia also pushed global defense spending higher for an 11th straight year in 2025, SIPRI said in a report published Monday. SIPRI said the increase was fueled by “another year of wars, uncertainty and geopolitical upheaval with large-scale armament drives.” Global military spending as a share of GDP climbed to 2.5%, its highest level since 2009, the report showed. Europe was the main driver of the increase in global spending, with spending rising 14% to $864 billion. Excluding Russia, Germany was the region's largest
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