The Cost of War: Ukraine entered the top 10 most expensive armies in the world, Israel became the first in spending per person

Global defense spending in 2025 reached $2.63 trillion. Ukraine ranked tenth in the world in terms of defense budget size, while Israel was in thirteenth place and became the world leader in per capita spending.

The world continues to arm itself rapidly. In 2025, the combined defense spending of states increased to $2.63 trillion compared to $2.48 trillion the previous year.

Taking inflation into account, the growth was 2.5%. The main drivers of increased spending were Europe and the Middle East — regions where states increasingly view war not as a distant risk but as a real threat to national security. These data are provided by the International Institute for Strategic Studies in the report The Military Balance 2026.

On average, countries around the world allocated 2.01% of their gross domestic product to defense. However, Ukraine and Israel’s figures were significantly higher than the global level: Ukraine allocated 21.19% of GDP to defense, Israel — 6.5%.

Ukraine closed the global top ten

According to the ranking compiled based on IISS data, the largest defense budget was retained by the United States — $921.02 billion.

China was in second place with $251.29 billion, and Russia was third, with defense spending estimated at $186.2 billion. They are followed by Germany and the United Kingdom.

The top ten countries by defense budget size are:

1. USA — $921.02 billion;
2. China — $251.29 billion;
3. Russia — about $186.2 billion;
4. Germany — $107.31 billion;
5. United Kingdom — $94.26 billion;
6. India — $78.31 billion;
7. Saudi Arabia — $72.53 billion;
8. France — $70 billion;
9. Japan — $58.91 billion;
10. Ukraine — $44.45 billion.

Ukraine was the only state in the top ten that allocated more than a fifth of its entire national economy to the military. With a global average of 2.01%, Ukraine’s defense burden exceeds it by more than ten times.

Per capita, Ukraine’s defense budget amounted to about $1217. This is less than Israel’s figure, but extremely high for a country whose economy and infrastructure continue to suffer the consequences of full-scale Russian aggression.

Ukraine spends these funds not on demonstrating global power or creating military bases abroad. It is about the direct survival of the state: maintaining the army, producing and purchasing weapons, drones, and ammunition, protecting cities from missile attacks, and holding the front line.

Israel did not enter the top ten but set another world record

Israel ranked thirteenth with a defense budget of $39.68 billion.

Above Israel, besides the top ten, were South Korea with a budget of $43.84 billion and Italy with $40.09 billion. The difference between Israel and Ukraine, which closed the top ten, was less than five billion dollars.

But in terms of per capita spending, Israel came first in the world. Each Israeli accounted for about $4153 in defense spending — more than three times that of Ukraine.

This figure is related not only to the population size. Israel maintains a technologically complex army, large air force, reservist mobilization system, and multi-layered missile defense. The Iron Dome, David’s Sling, and Arrow complexes, aviation, intelligence, and protection of civilian infrastructure require constant expenses.

Israel allocated 6.5% of GDP to defense — more than three times the global average. This reflects the reality of a country simultaneously facing missile and drone threats, activities of Iran-backed groups, and the need to maintain constant combat readiness.

For the Israeli audience, these figures are particularly indicative. Israel lags behind the largest states in terms of total budget volume, but each citizen effectively bears one of the highest defense burdens in the world.

NAnews —Israel News | Nikk.Agency views the Ukrainian and Israeli figures as reflecting two different but largely overlapping models of a military state. Ukraine allocates an unprecedented part of its national economy to war, while Israel maintains one of the most expensive defense systems per capita.

Two countries for which defense has become a matter of existence

Comparing Ukraine and Israel only by budget amounts would be incorrect.

Ukraine is a large European country engaged in a full-scale war against a larger adversary. Its expenses are distributed among a vast front line, a large army, ammunition production, drones, and the restoration of constantly lost equipment.

Israel is significantly smaller in territory and population but focuses on aviation, intelligence, precision weapons, missile defense, and the ability to quickly mobilize hundreds of thousands of reservists. The cost of intercepting a missile, operating a modern aircraft, or maintaining constant readiness can be measured in millions of dollars.

Therefore, a large defense budget in itself is not a ranking of military strength. It does not show the quality of command, soldier motivation, equipment condition, ammunition availability, or society’s readiness to endure a prolonged war.

However, the figures demonstrate the cost of the threat.

Most countries in the world spend about 2% of GDP on defense and view war as one of the possible scenarios. For Ukraine and Israel, war has already become part of daily economic, political, and social reality.

Ukraine entered the top ten countries with the largest defense budgets in the world. Israel stopped a few positions from the top ten but took first place in per capita spending.

Behind these rankings are not only missiles, planes, and military technologies. Behind them are citizens’ taxes, reduced opportunities for the civilian economy, and the understanding that the lack of sufficient defense could cost the state significantly more.

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