Geopolitics & Markets
European NATO defence spending
Is Europe actually rearming, or only announcing it?
2.01% of combined GDP
Every European government has now promised to spend more on defence. This is the number that says whether the money moved, and it is deliberately unflattering: because it divides total spending by total GDP, the large economies that have been slowest to rearm pull it down, which is the honest picture of the alliance rather than the encouraging one.
The lag matters and we would rather state it than hide it. SIPRI's figures are compiled from audited national budgets, so the most recent complete year here trails the present by roughly two years. Announcements made since then — and there have been many — are not in this line yet. That is the point of keeping it: in two years it will show which of them were real.
How this is measured
Combined military expenditure of the 29 European members of NATO divided by their combined GDP, both in current US dollars. Spending is SIPRI data and GDP is national accounts data, each retrieved from the World Bank API (MS.MIL.XPND.CD and NY.GDP.MKTP.CD). Iceland is excluded because it has no armed forces. A year is plotted only when all 29 report both figures. This is an aggregate ratio, not an average of national ratios: it weights each country by the size of its economy, which is why it sits below the figure you get by averaging the individual percentages.
All observations
| Date | % of combined GDP |
|---|---|
| 31 Dec 2024 | 2.01 |
| 31 Dec 2023 | 1.78 |
| 31 Dec 2022 | 1.65 |
| 31 Dec 2021 | 1.64 |
| 31 Dec 2020 | 1.7 |
| 31 Dec 2019 | 1.56 |
| 31 Dec 2018 | 1.52 |
| 31 Dec 2017 | 1.47 |
| 31 Dec 2016 | 1.48 |
| 31 Dec 2015 | 1.49 |
| 31 Dec 2014 | 1.5 |