These NATO Countries Are Ramping Up Defense Spending

Military

Published: March 19, 2025 7:14 am

The North Atlantic Treaty Organization is widely considered the largest peace-time military alliance in the world. The 32 countries of NATO are bound together, in part, by a collective defense agreement, stating that an attack on one member-state will be seen as an attack on all. As a result, the alliance’s potency as a deterrent force hinges largely on each member maintaining a strong and effective military.

24/7 Wall St. Key Points:

Many NATO member states have long been underinvesting in their militaries.
The current context of heightened geopolitical instability, however, appears to be motivating broad-based increases in defense spending among alliance members.
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However, ensuring that each member invests sufficiently in their defense capabilities has proven challenging. In the wake of Russia’s 2014 invasion of Crimea, and amid rising instability in the Middle East, NATO leaders agreed to spend a minimum of 2% of their national gross domestic product on defense. However, as of 2023, the most recent year of available data, only 11 of the 31 NATO members with standing militaries were adhering to that guideline. (This is what would happen if NATO were to disband.)

Today, against the backdrop of the ongoing war in Ukraine and escalating tensions between the West and China, the head of NATO and former Prime Minister of the Netherlands, Mark Rutte, recently stated that alliance members should be prepared to invest over 3% of their GDP in defense. The Trump administration, meanwhile, has called for an even higher 5% threshold.

Although recent data shows that most NATO members are well short of these defense spending targets, this may not be the case much longer. In recent years, all but a handful of countries in the NATO alliance have meaningfully increased their defense spending.

Using data from the Stockholm International Peace Research Institute, or SIPRI, 24/7 Wall St. identified the NATO countries ramping up their defense spending the most. NATO members are ranked on the percent change in military spending from 2021, the year before Russia launched its full scale invasion of Ukraine, and 2023, the most recent year of available data. Spending figures are reflected in current U.S. dollars.

Although Iceland has been a NATO member since 1949, it was excluded from analysis as it does not have a standing military. It is important to note that while Sweden appears on this list, it did not become a member of the NATO alliance until 2024.

Among the 31 countries on this list, two have reduced military spending since 2021 and 29 have boosted military spending. Defense budget increases range from 1.7% to over 100%, depending on the country.

The highest ranking countries on this list — those that reported the largest defense budget increases between 2021 and 2023 — include several NATO members that share a border with either Russia, Ukraine or both. Additionally, Finland, a country that joined NATO in 2023, spent nearly 92% more on defense in its first year in the alliance than it did in 2021. (Here is a look at how NATO forces compare to Russia’s military.)

Notably, no NATO member has cut defense spending more since 2021 than Greece — a country that reported a nearly 7%, or $570 million, reduction in its military budget. Despite its pared down investments, Greece is still among the minority share of NATO allies that spends at least 2% of its national GDP on defense.

These are the NATO countries ramping up military spending the most.

Why it Matters

The Bulgarian Navy Joins NATO Multinational Exercise Breeze 2022

In eras of heightened geopolitical instability, NATO members have historically been encouraged to boost defense spending — both as a means of better ensuring military readiness and of strengthening the alliance’s posture of deterrence. While most NATO allies are falling short of previously agreed upon investment targets, nearly every NATO member has meaningfully increased their military budgets since the start of the war in Ukraine. For one NATO country, defense spending more than doubled between 2021 and 2023.

31. Greece

Greek Military Vessel (BY 2.0) by cbamber85

Change in total defense spending from 2021 to 2023: -6.9% (-$570.1 million)
Total defense budget in current USD: $7.7 billion in 2023, $8.3 billion 2021
Defense spending as a share of GDP: 3.2% in 2023; 3.9% in 2021
Defense spending as a share of government budget: 6.6% in 2023; 6.7% in 2021
Per capita defense spending: $747 in 2023, $795 in 2021
NATO member since: 1952

30. Italy

Change in total defense spending from 2021 to 2023: -1.9% (-$703.8 million)
Total defense budget in current USD: $35.5 billion in 2023, $36.2 billion 2021
Defense spending as a share of GDP: 1.6% in 2023; 1.7% in 2021
Defense spending as a share of government budget: 3.0% in 2023; 3.0% in 2021
Per capita defense spending: $604 in 2023, $612 in 2021
NATO member since: 1949

29. Türkiye

Change in total defense spending from 2021 to 2023: +1.7% (+$260.4 million)
Total defense budget in current USD: $15.8 billion in 2023, $15.6 billion 2021
Defense spending as a share of GDP: 1.5% in 2023; 1.9% in 2021
Defense spending as a share of government budget: N/A% in 2023; N/A% in 2021
Per capita defense spending: $N/A in 2023, $N/A in 2021
NATO member since: 1952

28. Norway

Change in total defense spending from 2021 to 2023: +2.8% (+$233.4 million)
Total defense budget in current USD: $8.7 billion in 2023, $8.4 billion 2021
Defense spending as a share of GDP: 1.6% in 2023; 1.7% in 2021
Defense spending as a share of government budget: 4.0% in 2023; 3.6% in 2021
Per capita defense spending: $1584 in 2023, $1561 in 2021
NATO member since: 1949

27. Croatia

Change in total defense spending from 2021 to 2023: +5.8% (+$78.7 million)
Total defense budget in current USD: $1.4 billion in 2023, $1.4 billion 2021
Defense spending as a share of GDP: 1.8% in 2023; 2.0% in 2021
Defense spending as a share of government budget: 3.9% in 2023; 4.1% in 2021
Per capita defense spending: $359 in 2023, $335 in 2021
NATO member since: 2009

26. Romania

Romania+tanks | Romanian tanks attack during Combined Resolve II

Change in total defense spending from 2021 to 2023: +5.9% (+$310.2 million)
Total defense budget in current USD: $5.6 billion in 2023, $5.3 billion 2021
Defense spending as a share of GDP: 1.6% in 2023; 1.9% in 2021
Defense spending as a share of government budget: 4.4% in 2023; 5.0% in 2021
Per capita defense spending: $282 in 2023, $274 in 2021
NATO member since: 2004

25. Canada

Change in total defense spending from 2021 to 2023: +7.3% (+$1.9 billion)
Total defense budget in current USD: $27.2 billion in 2023, $25.4 billion 2021
Defense spending as a share of GDP: 1.3% in 2023; 1.3% in 2021
Defense spending as a share of government budget: 3.1% in 2023; 2.8% in 2021
Per capita defense spending: $702 in 2023, $665 in 2021
NATO member since: 1949

24. France

Rafale (CC BY-SA 4.0) by Ank Kumar

Change in total defense spending from 2021 to 2023: +8.2% (+$4.7 billion)
Total defense budget in current USD: $61.3 billion in 2023, $56.6 billion 2021
Defense spending as a share of GDP: 2.1% in 2023; 1.9% in 2021
Defense spending as a share of government budget: 3.6% in 2023; 3.2% in 2021
Per capita defense spending: $947 in 2023, $878 in 2021
NATO member since: 1949

23. Portugal

portugal artillery by Allied Joint Force Command Brunssum

portugal artillery (CC BY-SA 2.0) by Allied Joint Force Command Brunssum

Change in total defense spending from 2021 to 2023: +8.8% (+$340.7 million)
Total defense budget in current USD: $4.2 billion in 2023, $3.9 billion 2021
Defense spending as a share of GDP: 1.5% in 2023; 1.5% in 2021
Defense spending as a share of government budget: 3.4% in 2023; 3.2% in 2021
Per capita defense spending: $412 in 2023, $377 in 2021
NATO member since: 1949

22. United States of America

United States military | Military Operation at sunrise

Change in total defense spending from 2021 to 2023: +13.6% (+$109.8 billion)
Total defense budget in current USD: $916.0 billion in 2023, $806.2 billion 2021
Defense spending as a share of GDP: 3.4% in 2023; 3.4% in 2021
Defense spending as a share of government budget: 9.1% in 2023; 8.0% in 2021
Per capita defense spending: $2694 in 2023, $2392 in 2021
NATO member since: 1949

21. United Kingdom

Flag of United Kingdom on military uniform. UK Army. British Armed Forces, soldiers. by Andrew Angelov

Flag of United Kingdom on military uniform. UK Army. British Armed Forces, soldiers. (Shutterstock.com) by Andrew Angelov

Change in total defense spending from 2021 to 2023: +15.1% (+$9.8 billion)
Total defense budget in current USD: $74.9 billion in 2023, $65.1 billion 2021
Defense spending as a share of GDP: 2.3% in 2023; 2.1% in 2021
Defense spending as a share of government budget: 5.2% in 2023; 4.5% in 2021
Per capita defense spending: $1106 in 2023, $968 in 2021
NATO member since: 1949

20. Sweden

Sweden tank (CC BY-SA 3.0) by Jorchr

Change in total defense spending from 2021 to 2023: +15.5% (+$1.2 billion)
Total defense budget in current USD: $8.8 billion in 2023, $7.6 billion 2021
Defense spending as a share of GDP: 1.5% in 2023; 1.2% in 2021
Defense spending as a share of government budget: 3.1% in 2023; 2.5% in 2021
Per capita defense spending: $825 in 2023, $724 in 2021
NATO member since: 2024

19. Netherlands

Change in total defense spending from 2021 to 2023: +15.5% (+$2.2 billion)
Total defense budget in current USD: $16.6 billion in 2023, $14.4 billion 2021
Defense spending as a share of GDP: 1.5% in 2023; 1.4% in 2021
Defense spending as a share of government budget: 3.4% in 2023; 3.0% in 2021
Per capita defense spending: $944 in 2023, $823 in 2021
NATO member since: 1949

18. Germany

Austria Tanks by 7th Army Training Command

Austria Tanks (CC BY 2.0) by 7th Army Training Command

Change in total defense spending from 2021 to 2023: +18.2% (+$10.3 billion)
Total defense budget in current USD: $66.8 billion in 2023, $56.5 billion 2021
Defense spending as a share of GDP: 1.5% in 2023; 1.3% in 2021
Defense spending as a share of government budget: 3.1% in 2023; 2.6% in 2021
Per capita defense spending: $802 in 2023, $678 in 2021
NATO member since: 1955

17. Slovenia

Change in total defense spending from 2021 to 2023: +19.0% (+$144.7 million)
Total defense budget in current USD: $907.5 million in 2023, $762.8 million 2021
Defense spending as a share of GDP: 1.3% in 2023; 1.2% in 2021
Defense spending as a share of government budget: 2.8% in 2023; 2.5% in 2021
Per capita defense spending: $428 in 2023, $360 in 2021
NATO member since: 2004

16. Spain

F-18 Hornet (CC BY 2.0) by VALDITHRASH

Change in total defense spending from 2021 to 2023: +21.3% (+$4.2 billion)
Total defense budget in current USD: $23.7 billion in 2023, $19.5 billion 2021
Defense spending as a share of GDP: 1.5% in 2023; 1.4% in 2021
Defense spending as a share of government budget: 3.2% in 2023; 2.7% in 2021
Per capita defense spending: $499 in 2023, $412 in 2021
NATO member since: 1982

15. Belgium

Luke AFB selected as candidate for Belgium Lockheed Martin F-35A Lighting II Joint Strike Fighter Training by Robert Sullivan

Luke AFB selected as candidate for Belgium Lockheed Martin F-35A Lighting II Joint Strike Fighter Training (Public domain) by Robert Sullivan

Change in total defense spending from 2021 to 2023: +22.3% (+$1.4 billion)
Total defense budget in current USD: $7.6 billion in 2023, $6.2 billion 2021
Defense spending as a share of GDP: 1.2% in 2023; 1.0% in 2021
Defense spending as a share of government budget: 2.2% in 2023; 1.9% in 2021
Per capita defense spending: $653 in 2023, $537 in 2021
NATO member since: 1949

14. Montenegro

Military Montenegro 7 (CC BY-SA 4.0) by CRNAGORAMNE

Change in total defense spending from 2021 to 2023: +25.7% (+$23.4 million)
Total defense budget in current USD: $114.5 million in 2023, $91.1 million 2021
Defense spending as a share of GDP: 1.6% in 2023; 1.6% in 2021
Defense spending as a share of government budget: 3.7% in 2023; 3.5% in 2021
Per capita defense spending: $183 in 2023, $145 in 2021
NATO member since: 2017

13. Latvia

Change in total defense spending from 2021 to 2023: +27.0% (+$222.2 million)
Total defense budget in current USD: $1.0 billion in 2023, $823.1 million 2021
Defense spending as a share of GDP: 2.3% in 2023; 2.1% in 2021
Defense spending as a share of government budget: 5.6% in 2023; 4.8% in 2021
Per capita defense spending: $571 in 2023, $439 in 2021
NATO member since: 2004

12. Czechia

Change in total defense spending from 2021 to 2023: +28.5% (+$1.1 billion)
Total defense budget in current USD: $5.1 billion in 2023, $3.9 billion 2021
Defense spending as a share of GDP: 1.5% in 2023; 1.4% in 2021
Defense spending as a share of government budget: 3.3% in 2023; 3.0% in 2021
Per capita defense spending: $482 in 2023, $367 in 2021
NATO member since: 1999

11. Slovakia

JAS-39 Gripen Czechia (CC BY-SA 2.0) by slezo

Change in total defense spending from 2021 to 2023: +29.0% (+$598.3 million)
Total defense budget in current USD: $2.7 billion in 2023, $2.1 billion 2021
Defense spending as a share of GDP: 2.0% in 2023; 1.7% in 2021
Defense spending as a share of government budget: 4.2% in 2023; 3.8% in 2021
Per capita defense spending: $460 in 2023, $379 in 2021
NATO member since: 2004

10. North Macedonia

North Macedonia Tank (CC BY-SA 3.0) by MilitaryJournal

Change in total defense spending from 2021 to 2023: +29.7% (+$61.1 million)
Total defense budget in current USD: $266.6 million in 2023, $205.6 million 2021
Defense spending as a share of GDP: 1.7% in 2023; 1.5% in 2021
Defense spending as a share of government budget: 4.7% in 2023; 4.1% in 2021
Per capita defense spending: $128 in 2023, $98 in 2021
NATO member since: 2020

9. Bulgaria

160724-Z-NT152-004 by Oregon National Guard

160724-Z-NT152-004 (CC BY 2.0) by Oregon National Guard

Change in total defense spending from 2021 to 2023: +50.4% (+$643.2 million)
Total defense budget in current USD: $1.9 billion in 2023, $1.3 billion 2021
Defense spending as a share of GDP: 1.8% in 2023; 1.5% in 2021
Defense spending as a share of government budget: 5.0% in 2023; 3.9% in 2021
Per capita defense spending: $287 in 2023, $185 in 2021
NATO member since: 2004

8. Denmark

Change in total defense spending from 2021 to 2023: +54.4% (+$2.9 billion)
Total defense budget in current USD: $8.1 billion in 2023, $5.3 billion 2021
Defense spending as a share of GDP: 2.0% in 2023; 1.3% in 2021
Defense spending as a share of government budget: 4.1% in 2023; 2.6% in 2021
Per capita defense spending: $1378 in 2023, $901 in 2021
NATO member since: 1949

7. Estonia

Change in total defense spending from 2021 to 2023: +58.9% (+$440.9 million)
Total defense budget in current USD: $1.2 billion in 2023, $748.6 million 2021
Defense spending as a share of GDP: 2.9% in 2023; 2.0% in 2021
Defense spending as a share of government budget: 6.8% in 2023; 4.9% in 2021
Per capita defense spending: $899 in 2023, $563 in 2021
NATO member since: 2004

6. Luxembourg

Betzdorf, SES (CC BY-SA 4.0) by GilPe

Change in total defense spending from 2021 to 2023: +64.3% (+$259.2 million)
Total defense budget in current USD: $662.5 million in 2023, $403.3 million 2021
Defense spending as a share of GDP: 0.7% in 2023; 0.5% in 2021
Defense spending as a share of government budget: 1.6% in 2023; 1.1% in 2021
Per capita defense spending: $1011 in 2023, $631 in 2021
NATO member since: 1949

5. Lithuania

Airmen, aircraft to support NA... by DVIDSHUB

Airmen, aircraft to support NA... (CC BY 2.0) by DVIDSHUB

Change in total defense spending from 2021 to 2023: +65.4% (+$854.0 million)
Total defense budget in current USD: $2.2 billion in 2023, $1.3 billion 2021
Defense spending as a share of GDP: 2.7% in 2023; 2.0% in 2021
Defense spending as a share of government budget: 6.9% in 2023; 5.3% in 2021
Per capita defense spending: $795 in 2023, $469 in 2021
NATO member since: 2004

4. Albania

Change in total defense spending from 2021 to 2023: +78.5% (+$174.8 million)
Total defense budget in current USD: $397.6 million in 2023, $222.8 million 2021
Defense spending as a share of GDP: 1.7% in 2023; 1.2% in 2021
Defense spending as a share of government budget: 5.6% in 2023; 3.9% in 2021
Per capita defense spending: $140 in 2023, $78 in 2021
NATO member since: 2009

3. Hungary

Change in total defense spending from 2021 to 2023: +80.8% (+$1.9 billion)
Total defense budget in current USD: $4.4 billion in 2023, $2.4 billion 2021
Defense spending as a share of GDP: 2.1% in 2023; 1.3% in 2021
Defense spending as a share of government budget: 4.4% in 2023; 2.7% in 2021
Per capita defense spending: $429 in 2023, $248 in 2021
NATO member since: 1999

2. Finland

Change in total defense spending from 2021 to 2023: +91.8% (+$3.5 billion)
Total defense budget in current USD: $7.3 billion in 2023, $3.8 billion 2021
Defense spending as a share of GDP: 2.4% in 2023; 1.3% in 2021
Defense spending as a share of government budget: 4.4% in 2023; 2.3% in 2021
Per capita defense spending: $1325 in 2023, $692 in 2021
NATO member since: 2023

1. Poland

Change in total defense spending from 2021 to 2023: +106.9% (+$16.4 billion)
Total defense budget in current USD: $31.6 billion in 2023, $15.3 billion 2021
Defense spending as a share of GDP: 3.8% in 2023; 2.2% in 2021
Defense spending as a share of government budget: 8.1% in 2023; 5.1% in 2021
Per capita defense spending: $771 in 2023, $399 in 2021
NATO member since: 1999

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These NATO Countries Are Ramping Up Defense Spending

Why it Matters

31. Greece

30. Italy

29. Türkiye

28. Norway

27. Croatia

26. Romania

25. Canada

24. France

23. Portugal

22. United States of America

21. United Kingdom

20. Sweden

19. Netherlands

18. Germany

17. Slovenia

16. Spain

15. Belgium

14. Montenegro

13. Latvia

12. Czechia

11. Slovakia

10. North Macedonia

9. Bulgaria

8. Denmark

7. Estonia

6. Luxembourg

5. Lithuania

4. Albania

3. Hungary

2. Finland

1. Poland

It’s Your Money, Your Future—Own It (sponsor)

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These Are the World Military Powers with the Most Puchasing Power

These NATO Countries Are Ramping Up Defense Spending

Why it Matters

31. Greece

30. Italy

29. Türkiye

28. Norway

27. Croatia

26. Romania

25. Canada

24. France

23. Portugal

22. United States of America

21. United Kingdom

20. Sweden

19. Netherlands

18. Germany

17. Slovenia

16. Spain

15. Belgium

14. Montenegro

13. Latvia

12. Czechia

11. Slovakia

10. North Macedonia

9. Bulgaria

8. Denmark

7. Estonia

6. Luxembourg

5. Lithuania

4. Albania

3. Hungary

2. Finland

1. Poland

It’s Your Money, Your Future—Own It (sponsor)

Latest from 24/7

These Are the World Military Powers with the Most Puchasing Power

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