Military spending in 2024 rises unprecedented 9.4% to $2.72 trillion
KYODO NEWS - Apr 28, 2025 - 12:22 | All, World
Global military expenditures in 2024 rose 9.4 percent from the year before to a record $2.72 trillion, an international security think tank said Monday, logging the steepest hike since it began compiling the data in 1988.
The figure climbed for the 10th consecutive year, with recent increases reflecting Russia's full-scale war on Ukraine that began in February 2022 and heightened tensions in the Middle East, the Stockholm International Peace Research Institute said.
"Over 100 countries around the world raised their military spending in 2024. As governments increasingly prioritize military security, often at the expense of other budget areas, the economic and social trade-offs could have significant effects on societies for years to come," said Xiao Liang, researcher at the institute's Military Expenditure and Arms Production Program, in a statement.
By country, the United States topped the list with outlays of $997 billion, up 5.7 percent, while China raised its spending by 7.0 percent to an estimated $314 billion, with the two countries accounting for nearly half of the global total. Russia, Germany and India followed behind the two superpowers.
Russia boosted spending by 38 percent to an estimated $149 billion, double the level in 2015 but the actual amount is likely to be higher as part of its expenditure was marked as classified in 2024.
Outlays by Ukraine, ranking eighth, grew 2.9 percent to $64.7 billion. The figure represents 34 percent of its gross domestic product, the largest share among all countries in 2024, it said.
In Asia, China's spending rose for the 30th straight year, accounting for 50 percent of all military spending in Asia and Oceania.
Japan's military spending rose 21 percent to $55.3 billion, the largest annual increase since 1952, and comprised 1.4 percent of the country's GDP, the highest ratio since 1958. The country placed 10th in the world ranking, the same as the previous year.
"Major military spenders in the Asia-Pacific region are investing increasing resources into advanced military capabilities," said Nan Tian, another SIPRI researcher. "With several unresolved disputes and mounting tensions, these investments risk sending the regions into a dangerous arms-race spiral."
Israel's military expenditure surged by 65 percent to $46.5 billion, climbing to 12th from 14th the previous year, as it continued to attack Gaza and was engaged in conflict with the Hezbollah militant group in southern Lebanon.
Related coverage:
North Korea confirms troop deployment to Russia under bilateral pact
Japan defense vessels stop at China-funded naval base in Cambodia
Japan to spend 1.8% of GDP on defense in 2025, 2% target in sight
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Kyodo News
an hour ago
- Kyodo News
U.S., China hold high-level trade talks with rare earths in focus
KYODO NEWS - 17 hours ago - 09:29 | World, All Senior U.S. and Chinese officials met in London on Monday, with a top economic adviser to President Donald Trump expecting the latest round of trade talks to result in Beijing promptly lifting its export controls on rare earth minerals. The second high-level meeting, following mid-May talks in Geneva, took place after Trump and Chinese President Xi Jinping spoke by phone last week, their first known direct communication since the U.S. president's inauguration for a nonconsecutive second term in January. U.S. Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer attended the talks, which could also continue Tuesday. The trio met with a Chinese delegation led by Vice Premier He Lifeng, a longtime confidant of Xi who oversees economic affairs. On Monday, Kevin Hassett, director of the National Economic Council, struck an optimistic note about the meeting's anticipated outcome. Hassett said in an interview with CNBC that the talks are likely to end with a "big, strong handshake." "Our expectation is that after the handshake, then export controls from the U.S. will be eased, and the rare earths will be released in volume, and then we can go back to negotiating smaller matters," he said. The 90-minute phone conversation between Trump and Xi on Thursday came after Washington and Beijing exchanged barbs over alleged violations of a preliminary agreement reached in Geneva. Under the deal, the two countries established a 90-day truce in their trade war and committed to stepping back from their respective triple-digit tariff rates. In the days leading up to his call with Xi, the Trump administration expressed frustration over China's slow removal of export controls on critical minerals used in high-tech products, accusing Beijing of failing to uphold the terms of the initial deal. China had criticized the Trump administration for imposing "discriminatory measures," including export control guidance on artificial intelligence chips and the revocation of visas for Chinese students studying in the United States. China's Commerce Ministry said Saturday that Beijing has approved a number of export license applications for rare earth-related items, citing global demand from industries such as robotics and new energy vehicles. However, it did not provide further details. China mines about 70 percent of the world's rare earths that are used in the production of smartphones, personal computers and vehicles. As part of retaliatory measures against high U.S. tariffs, Beijing in April introduced export controls on seven types of rare-earth minerals. Amid a tit-for-tat tariff war, Chinese exports to the United States in May fell 34.5 percent from a year earlier to $28.8 billion, while Chinese imports from the country dropped 18.1 percent to $10.8 billion, customs data of the Asian powerhouse showed Monday. Related coverage: Japan's top negotiator eyes U.S. trip this week for 6th tariff talks Japan, EU eye launch of "competitive alliance" scheme to boost trade Xi, Trump agree to new round of Sino-U.S. trade talks
Japan Times
4 hours ago
- Japan Times
World Bank slashes global growth forecast as trade tensions bite
The World Bank on Tuesday slashed its global growth forecast for 2025 by 0.4 percentage point to 2.3%, saying that higher tariffs and heightened uncertainty posed a "significant headwind" for nearly all economies. In its twice-yearly Global Economic Prospects report, the bank lowered its forecasts for nearly 70% of all economies — including the United States, China and Europe, as well as six emerging market regions — from the levels it projected just six months ago before U.S. President Donald Trump took office. Trump has upended global trade with a series of on-again, off-again tariff hikes that have increased the effective U.S. tariff rate from below 3% to the mid-teens — its highest level in almost a century — and triggered retaliation by China and other countries. The World Bank is the latest body to cut its growth forecast as a result of Trump's erratic trade policies, although U.S. officials insist the negative consequences will be offset by a surge in investment and still-to-be approved tax cuts. The bank stopped short of forecasting a recession, but said global economic growth this year would be its weakest outside of a recession since 2008. By 2027, global gross domestic product growth was expected to average just 2.5%, the slowest pace of any decade since the 1960s. The report forecast that global trade would grow by 1.8% in 2025, down from 3.4% in 2024 and roughly a third of its 5.9% level in the 2000s. The forecast is based on tariffs in effect as of late May, including a 10% U.S. tariff on imports from most countries. It excludes increases announced by Trump in April and then postponed until July 9 to allow for negotiations. The bank said global inflation was expected to reach 2.9% in 2025, remaining above pre-COVID levels, given tariff increases and tight labor markets. "Risks to the global outlook remain tilted decidedly to the downside," the bank wrote. It said its models showed that a further 10-percentage point increase in average U.S. tariffs, on top of the 10% rate already implemented, and proportional retaliation by other countries, could shave another 0.5 percentage point off the outlook for 2025. Such an escalation in trade barriers would result "in global trade seizing up in the second half of this year ... accompanied by a widespread collapse in confidence, surging uncertainty and turmoil in financial markets," the report said. Nonetheless, it said the risk of a global recession was less than 10%. 'Fog on a runway' Top officials from the United States and China are meeting in London this week to try to defuse a trade dispute that has widened from tariffs to restrictions over rare earth minerals, threatening a global supply chain shock and slower growth. "Uncertainty remains a powerful drag, like fog on a runway. It slows investment and clouds the outlook," World Bank Deputy Chief Economist Ayhan Kose said in an interview. But he said there were signs of increased dialogue on trade that could help dispel uncertainty, and supply chains were adapting to a new global trade map, not collapsing. Global trade growth could see a modest rebound in 2026 to 2.4%, and developments in artificial intelligence could also boost growth, he said. "We think that eventually the uncertainty will decline," he said. "Once the type of fog we have lifts, the trade engine may start running again, but at a slower pace." Kose said while things could get worse, trade was continuing and China, India and others were still delivering robust growth. Many countries were also discussing new trade partnerships that could pay dividends later, he said. U.S. growth forecast cut sharply The World Bank said the global outlook had "deteriorated substantially" since January, mainly due to advanced economies, now seen growing by just 1.2%, down half a point, after expanding 1.7% in 2024. The U.S. forecast was slashed by 0.9 percentage point from its January forecast to 1.4%, and the 2026 outlook was lowered by 0.4 percentage point to 1.6%. Rising trade barriers, "record-high uncertainty" and a spike in financial market volatility were expected to weigh on private consumption, trade and investment, it said. Growth estimates in the euro area were cut by 0.3 percentage point to 0.7% and in Japan by 0.5 percentage point to 0.7%. It said emerging markets and developing economies were expected to grow by 3.8% in 2025 versus 4.1% in January's forecast. Poor countries would suffer the most, the report said. By 2027 developing economies' per capita GDP would be 6% below pre-pandemic levels, and it could take these countries — minus China — two decades to recoup the economic losses of the 2020s. Mexico, heavily dependent on trade with the U.S., saw its growth forecast cut by 1.3 percentage points to 0.2% in 2025. The World Bank left its forecast for China unchanged at 4.5% from January, saying Beijing still had monetary and fiscal space to support its economy and stimulate growth.
Kyodo News
6 hours ago
- Kyodo News
Kyodo News Digest: June 10, 2025
KYODO NEWS - 2 hours ago - 20:00 | All, World, Japan The following is the latest list of selected news summaries by Kyodo News. ---------- G7 leaders may skip joint declaration, 1st since 2014: Japan source TOKYO - The Group of Seven nations are likely to skip a joint statement at the end of an upcoming three-day summit in Canada, a Japanese government source said Tuesday, marking the first time since 2014 the meeting would conclude without a consensus document. The move is apparently aimed at preventing the G7, known for its unity in tacking global challenges, from exposing internal divisions as leaders gather for their first in-person meeting since U.S. President Donald Trump took office in January. ---------- Japan ruling bloc OKs campaigning on cash handouts in summer election TOKYO - Japan's ruling parties agreed Tuesday to include cash handouts for households hit by rising prices in their platforms for this summer's House of Councillors election, senior lawmakers said. The Constitutional Democratic Party of Japan, the main opposition force, unveiled its election pledges Tuesday, highlighting a proposal to suspend the 8 percent consumption tax on food for at least one year, in sharp contrast with the ruling Liberal Democratic Party, which opposes tax cuts. ---------- Japan urges Iran not to "miss opportunity" for nuke deal with U.S. TOKYO - Japanese Foreign Minister Takeshi Iwaya on Tuesday urged his Iranian counterpart not to "miss the opportunity" to reach a nuclear deal with the United States, as Japan seeks to help advance what appears to be delicate bilateral negotiations. During their phone talks, Iwaya was also quoted by his ministry as telling Foreign Minister Seyyed Abbas Araghchi that Japan will continue to make "utmost diplomatic efforts" toward a peaceful resolution, while they agreed to keep close communication. ---------- China's Xi urges new S. Korean leader Lee to improve bilateral ties BEIJING - Chinese President Xi Jinping urged new South Korean President Lee Jae Myung to promote a bilateral strategic cooperative partnership in their first telephone conversation on Tuesday, the Chinese Foreign Ministry said. In a veiled reference to high U.S. tariffs imposed under President Donald Trump, Xi called for China and South Korea to "jointly safeguard multilateralism and free trade" and "ensure the stable and smooth functioning of global and regional industrial and supply chains," the ministry said. ---------- Toyota, Daimler ink Japanese truck units merger deal for April 2026 TOKYO - Toyota Motor Corp. and Daimler Truck Holding AG said Tuesday they concluded an agreement to merge their Japanese truck subsidiaries under a new holding company, aiming to boost competitiveness and better respond to challenges posed by energy transition and technological innovation. Hino Motors Ltd., a subsidiary of Toyota Motor, and Mitsubishi Fuso Truck and Bus Corp., a unit of Daimler, will operate under the holding company to be set up in April 2026 and listed on the Tokyo Stock Exchange's Prime Market, with the parent companies each holding a 25 percent stake in the new firm. ---------- 4-meter-long sinkhole appears in southwestern Japan, no one injured FUKUOKA - A 4-meter-long sinkhole opened near a busy shopping district in central Fukuoka on Tuesday morning, forcing a closure of the area, though no injuries were reported. Police received an emergency call at 9:50 a.m. reporting a collapsed sidewalk along a major road in the city. The hole, which spanned both the road and the sidewalk, measured about 2 meters wide and 2 meters deep, they said. ---------- Ex-Taiwan ruling party members indicted over spying for China TAIPEI - Four former members of Taiwan's ruling party were indicted Tuesday over spying for mainland China in violation of the self-ruled island's security laws. The Taipei District Prosecutors Office said the four male suspects, including a former aide to former Foreign Minister Joseph Wu, had collaborated to gather and provide confidential government information to Chinese intelligence agents. ---------- Over half obtain political news via mass media in Japan: survey TOKYO - Over half of respondents said they obtain news about elections and politics from the mass media, while about 10 percent rely on social media, according to a survey released Tuesday by a think tank affiliated with an internet news app company. Although the mass media has recently been criticized for lacking neutrality and objectivity, 68.7 percent said the information they provide is "reliable," with 9.0 percent rating it "very reliable" and 59.7 percent "relatively reliable." Video: Rainy season begins in western, central Japan regions
