NATO Members Ramp Up Military Expenditure Amid Global Shifts
Defense spending across NATO countries reached a historic $1.4 trillion in 2025, according to the alliance’s annual report released Thursday. The figure reflects a 20% year-on-year increase in real terms for European members and Canada, whose combined military expenditure hit $574 billion.
All Members Meet 2% GDP Target
For the first time, all 32 NATO members met or exceeded the alliance’s benchmark of allocating 2% of GDP to defense. Poland, Lithuania, and Latvia led the bloc by achieving a new 3.5% GDP target for core defense needs—a goal established during last year’s summit in The Hague.
Roadmap to 5% Spending by 2035
NATO leaders agreed in June 2025 to raise annual defense-related spending to 5% of GDP by 2035. The plan designates 3.5% for traditional military needs and 1.5% for emerging security priorities like critical infrastructure protection and cybersecurity enhancements.
