NATO has published its latest annual report on Allied defence expenditure, showing sharp increases in spending across Europe alongside sustained US dominance.
The figures, current to June 2025, draw on data provided by Allied defence ministries as well as economic inputs from the European Commission, IMF and OECD.
NATO noted that the figures may differ from national budget statements due to its own standardised definition of defence expenditure.
Top spenders by absolute expenditure (2025)
- United States – $980.0 billion
- Germany – $93.7 billion
- United Kingdom – $90.5 billion
- France – $66.5 billion
- Italy – $48.8 billion
- Poland – $44.3 billion
- Canada – $43.9 billion
- Spain – $35.7 billion
- Türkiye – $32.6 billion
- Netherlands – $28.1 billion
The UK ranks third in NATO by overall defence spending, behind the US and Germany, with estimated expenditure of $90.5 billion in 2025.
Spending as a share of GDP (2025)
- Poland – 4.48%
- Lithuania – 4.00%
- Latvia – 3.73%
- Estonia – 3.38%
- Norway – 3.35%
- Denmark – 3.22%
- United States – 3.22%
- Greece – 2.85%
- United Kingdom – 2.40%
- France – 2.05%
Eastern flank countries dominate when measured by defence expenditure as a share of GDP. Poland leads NATO with 4.48 percent, while Lithuania, Latvia and Estonia also exceed 3 percent. The UK ranks ninth at 2.4 percent.
Percentage increases since 2014 (real terms)
- Lithuania – +534.9%
- Latvia – +383.2%
- Luxembourg – +367.0%
- Denmark – +263.6%
- Poland – +254.8%
- Sweden – +185.6%
- Slovenia – +179.0%
- Netherlands – +174.4%
- Czechia – +169.8%
- Norway – +155.7%
The data show dramatic growth in defence spending among NATO’s eastern and northern members since 2014, with Lithuania’s budget rising more than fivefold.
UK defence spending
Between 2014 and 2025, UK defence spending in real terms has shown steady growth, according to NATO figures. In 2014 expenditure stood at 62.7 billion (2021 US dollars) before dipping slightly to 60.8 billion in 2015. From there, spending rose incrementally year on year, reaching 63.7 billion in 2016, 65.1 billion in 2017, and 66.7 billion in 2018. In 2019 expenditure increased further to 67.2 billion and to 68.1 billion in 2020. By 2021 spending had grown to 71.9 billion and continued to rise to 74.7 billion in 2022. A small dip followed in 2023 with 74.4 billion recorded, before estimates showed a renewed climb to 77.9 billion in 2024 and 81.3 billion in 2025.
Overall, the data reflects a 29.6 percent real increase in UK defence spending over the period.
The Alliance stressed that the expenditure figures not only reflect budgets for national armed forces but also contributions to collective NATO operations and commitments, providing a standardised measure across all Allies.
Poland spending a lot less than us has done a lot more, all we seem to do is buy support contracts and study groups and window shop. Past couple of years they rebuilt there Army massively. Where we gave most of our kit and ammo away and never replaced it, Yes we four old rusty Nuc subs but come on they costing us that much we can not buy any thing, We spend twice much as Poland really do not have much to show for it land forces wise.
The Polish Navy consists of 2 old OHP class Frigates, and one Soviet era SSK. No CASD, no Carriers, no AAW Destroyers, no SSN’s, no amphib, and the entire naval rotary force consists of 4 Merlins. So no, they don’t do more with less.
I said about land forces not the navy, why do we spend twice as much as them but have crap small land forces. Not interested in their navy.
Cause it’s one defence budget, and stuff like carriers, nuclear submarines and advanced destroyers and frigates just costs a lot more than an armoured vehicle or a tank.
Really thanks for pointing that out so that costs us an Extra £54 Billion for all that? no its the fact we want shinny toys while robbing Peter to pay Paul. We have a very unbalanced armed forces where the Army is neglected then people come with excuses why. Never any on at MODs fault, never the Top brasses fault, we can not get any thing to work in budget or but enough of it. .Some just look for reason why when its simple we do not get value for money and most who deal with equipment buys are no very good at it,
We can not field one full manned, Armoured Div, we can field a mixed bag of lots things not a full equipped Armours Div, 14 Archer SPG’s does not cut it ,
The cost of a new tank is about £10 million. So 250 cost the same as a Type 31 frigate. Poland doesn’t have much of a navy; land forces cost less than naval forces. Simple fact is we have a lot of the expensive stuff you new for a naval power, Poland has a lot of the cheaper things needed for a continental power.
So our run down little under equipped army is the cost of having a bigger navy even though we spend £54 Billion more than them, my point was about land forces, they have sorted theirs in 3 to 5 years our is a mess with no light at the end of the tunnel. We do not get value for money, we do not spend wisely and we neglect the Army. With what we spend have better. Sadly we do not, and just saying we have bigger Navy does hide the fact our Army is worn out, run down, under equipped and too small.
FYI Poland has gone on a spending spree, but recent artciles said they didn’t earmark money for the maintenance. great having a thousand tanks, but useless if they are not properly maintained. not to mention manpower to crew them
Striking how much Italy gets for its modest outlay. Mainly because they don’t have the burden of nuclear deterrent or submarines, which together take more than 40% of the UK equipment budget.
But they have also made good choices in Cavour and Trieste, delivering multi role capability and a credible naval air force at far lower cost than the over ambitious QEs.
General inflation in the UK from 2014 to 2025 has been just over 39%. We all know defence inflation always runs considerably higher than general inflation, although I confess I don’t see why that’s always the case. BY YOUR FIGURES the UK defence budget has declined by about 10% over that period, not grown as you claimed.
going forward how much of this will be strategic pothole repairs and other infrastructure flannel? Massive spending on roads and 5 bullets each I imagine.
Yes exactly the nuclear detterence is the massive difference between us and the rest or Europe except for France which in naval terms I think is the best comparison with the RN as they bring very similar capabilites.
Also looking at the 2 fleets they do seem to mirror each other quite closely we will have 8 t26 to their 8 fremms their 5 fdi to our 5 t31 then just their 2 horizon against our 6 t45.
They have the 3 mistral and we look like we will only be getting 3 mrss by the looks.
The army has certainly had to play 2nd fiddle to the navy but we are an island nation the sealanes are vital.
Just a shambles we have to wait another 5 to 10 years before it all arrives!
With that expense and budget, there should be at least 400 Challenger tanks, 250 aircraft, and 24 escorts, plus 6 amphibious ships in service. I don’t know what they do with the money.