Global defence spending experienced a 9% increase, reaching a record $2.2 trillion in 2023. This surge was primarily attributed to heightened geopolitical tensions fueled by Russia’s invasion of Ukraine, according to the International Institute of Strategic Studies. The institute anticipates further budget increases in 2024, with the ongoing war and growing uncertainty in the Middle East following the Israel-Gaza conflict.
The director general of the think tank, Bastian Giegerich, noted the near-double-digit rise in spending reflects a “deteriorating security landscape.” Both Russia and Ukraine substantially increased military spending in 2023, with Ukraine’s defense budget seeing nearly a ninefold increase to $31.1 billion, excluding foreign donations. Russia, on the other hand, raised its military expenditure to $108.5 billion in 2023, with further increases planned.
Despite sustaining heavy losses in battle, particularly in tanks, Russia has been replenishing its forces at a rate of 100 tanks per month. Giegerich estimates that Russia could sustain its tank force for approximately two to three more years at the current rates. Ukraine, facing losses in military equipment, has been receiving support from Western nations. However, uncertainties arise as Western aid faces challenges, such as the passage of a military aid package blocked by Republicans.
The assessment also highlighted Israel’s extended assault on Hamas in Gaza, resulting in significant civilian casualties. Giegerich questioned the execution and feasibility of Israel’s overall objective in the operation. Additionally, three rounds of bombing by the US and UK on Houthi targets in Yemen raised uncertainties about the effectiveness in degrading the rebel group’s ability to strike at shipping in the Red Sea.
The US remains the world’s largest military spender, with a budget of $905.5 billion in 2023, surpassing the combined spending of the next 15 countries. China is the second-largest spender at $219.5 billion, followed by Russia. Despite concerns about its military capabilities, Britain ranks fifth globally, ahead of Germany in seventh and France in eighth. NATO members in Europe collectively increased defense spending by 32% since 2014, although only 10 of them meet the alliance’s 2% of GDP spending target.
