NATO defense spending has been increasing rapidly, with a growing number of countries surpassing the alliance’s guideline of allocating at least 2% of their GDP to military budgets. Poland, Estonia, and the United States are significantly increasing their expenditures in response to rising global tensions. Out of NATO’s 32 member countries, 23 have met or exceeded the 2% target, while the remaining 9 still fall short.
The primary reason behind increasing NATO defense spending is the heightened sense of insecurity, particularly following Russia’s invasion of Ukraine. Additionally, from rising tensions in Eastern Europe to growing cyber threats and military buildups in other parts of the world, NATO members continue to increase defense spending as a necessary step to ensure security.
Key Takeaways
- The United States remains the biggest defence spender in NATO, with approximately $1 trillion in annual military expenditure in 2024.
- Several countries, such as Spain, Slovenia, Luxembourg, and Belgium, continue to spend below the 2% NATO guideline.
- The cumulative average of defence spending among NATO members has increased, with many Eastern European countries showing sharp growth in recent years.
NATO Defence Spending in 2024
The following table shows the percentage of each NATO member’s GDP spent on defence. Countries above 2% have met or surpassed the NATO guideline, while others remain below target.
| Rank | Country | Defence Expenditure (% of GDP) |
|---|---|---|
| 1 | 🇵🇱 Poland | 4.12% |
| 2 | 🇪🇪 Estonia | 3.43% |
| 3 | 🇺🇸 United States | 3.38% |
| 4 | 🇱🇻 Latvia | 3.15% |
| 5 | 🇬🇷 Greece | 3.08% |
| 6 | 🇱🇹 Lithuania | 2.85% |
| 7 | 🇫🇮 Finland | 2.41% |
| 8 | 🇬🇧 United Kingdom | 2.37% |
| 9 | 🇩🇰 Denmark | 2.33% |
| 10 | 🇷🇴 Romania | 2.25% |
| 11 | 🇲🇰 North Macedonia | 2.22% |
| 12 | 🇳🇴 Norway | 2.20% |
| 13 | 🇧🇬 Bulgaria | 2.18% |
| 14 | 🇸🇪 Sweden | 2.14% |
| 15 | 🇩🇪 Germany | 2.12% |
| 16 | 🇭🇺 Hungary | 2.11% |
| 17 | 🇨🇿 Czechia | 2.10% |
| 18 | 🇹🇷 Türkiye | 2.09% |
| 19 | 🇫🇷 France | 2.06% |
| 20 | 🇳🇱 Netherlands | 2.05% |
| 21 | 🇦🇱 Albania | 2.03% |
| 22 | 🇲🇪 Montenegro | 2.02% |
| 23 | 🇸🇰 Slovak Republic | 2.00% |
| 24 | 🇭🇷 Croatia | 1.81% |
| 25 | 🇵🇹 Portugal | 1.55% |
| 26 | 🇮🇹 Italy | 1.49% |
| 27 | 🇨🇦 Canada | 1.37% |
| 28 | 🇧🇪 Belgium | 1.30% |
| 29 | 🇱🇺 Luxembourg | 1.29% |
| 30 | 🇸🇮 Slovenia | 1.29% |
| 31 | 🇪🇸 Spain | 1.28% |
The data is sourced from the NATO.
Poland
Poland tops the list with defence spending reaching 4.12% of its GDP—more than double the NATO guideline. The country shares a border with both Ukraine and Belarus, making it particularly vulnerable to regional instability.
Poland has been rapidly modernizing its military, purchasing advanced weapons from the U.S. and South Korea, including tanks, fighter jets, and missile systems. The rising defense spending signals the country’s intent to become a leading military force in Eastern Europe amid the Russia-Ukraine conflict.
Estonia
Estonia, a small Baltic nation, spends about 3.4% of its GDP on defence. Despite its size, Estonia, like other Baltic nations, takes its defense seriously due to its proximity to Russia. The country’s defense approach combines both high-tech solutions with a well-trained citizen militia, ensuring it can respond quickly to any threat.
United States
The U.S. remains the backbone of NATO, with defense spending closing $1 trillion in 2024. It accounts for nearly 70% of the alliance’s total military expenditures. As the largest economy in NATO, the U.S. bears a significant share of the alliance’s defense burden.
The country’s military bases around the world, high-tech weaponry, and global missions reflect its role as an international security leader. The U.S. not only funds its own forces but also supports allies through weapons sales, training, and strategic deployments.
Germany
Germany, Europe’s largest economy, has historically spent less on defense but recently crossed the 2% threshold after years of pressure from NATO allies. The war in Ukraine forced Berlin to rethink its military strategy. German lawmakers approve 100 billion euro special defense fund and plans to modernize its armed forces.
Latvia and Greece
Latvia and Greece spend 3.15% and 3.08% of GDP on defense budget respectively. Latvia, like its Baltic neighbour Estonia, sees defence as vital to national security. Greece, historically located near unstable regions, has always maintained higher defence budgets to manage potential threats in the eastern Mediterranean.
United Kingdom and France
The UK and France both remain above the 2% NATO guidelines. The UK stands at 2.33% and France spends at 2.06% on its defense. These long-standing NATO members continue to play key roles in Europe’s defence strategy. They maintain strong air forces and nuclear capabilities.
Countries Below the 2% Mark
Several major NATO economies, including Italy (1.49%), Canada (1.37%), and Spain (1.28%), still spend below the alliance’s target. While some are gradually increasing budgets, others face political or economic hurdles. Spain, for example, has a smaller military focus due to its geographic position, while Italy struggles with high public debt. NATO continues to encourage these nations to boost spending to ensure balanced security contributions.
Conclusion
NATO’s defence spending has surpassed $1.18 trillion in 2024, with the United States making up the lion’s share. But what’s striking is how many smaller countries are stepping up. Poland and the Baltic states are boosting their defence budgets at a record pace, showing that defence is no longer just the job of the big players. Meanwhile, countries like Spain and Belgium still lag behind in meeting the NATO’s minimum defense spending guidelines.
NATO’s 2% guideline is not a strict requirement, it serves as a crucial benchmark for fair burden-sharing. As global tensions rise, NATO’s ability to deter conflict will hinge on whether its members continue to prioritize defense, not just in words, but in spending.
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