Despite cuts at the Pentagon, the US still spends more on its armed forces than any other nation -- more, in fact, than the next 10 countries combined.
Samuel Weigley, 24/7 Wall St.
For the first time since 1998, global military spending is down. This coincides with a major decline in U.S. defense spending, which fell by more than $40 billion between 2011 and 2012. Even so, the United States still spent four times more on its military than China, the next biggest spender.
The slowdown in U.S. defense spending can be traced to two main factors, said Carina Solmirano, senior researcher at the Stockholm International Peace Research Institute (SIPRI), which measures annual military spending for most of the world's armed countries. The first is the drop in military spending after America's eight-year war in Iraq ended in 2011, and as operations in Afghanistan continued to wind down, Solmirano said.
"The second reason," said Solmirano, "is purely economics." With the U.S. facing a huge deficit crisis, Washington lawmakers agreed to make cuts to defense spending in 2011 and 2012. Solmirano added that barring the emergence of a new conflict, U.S. military spending likely will continue to fall.
Short-term changes in military spending often go hand-in-hand with periods of economic growth or financial crisis. Indeed, spending among nearly all the top European military powers declined last year.
Meanwhile, China increased its spending by nearly 8% between 2011 and 2012, and by more than 47% since 2008. This is partly for geopolitical reasons, explained Solmirano, who added that China's increase in spending has run "parallel to its increase in economic power as well."
Click through to see the five most expensive militaries in the world based on SIPRI's 2012 data. To see five more of the world's top military spenders, and for a full report, visit 24/7 Wall St.
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The slowdown in U.S. defense spending can be traced to two main factors, said Carina Solmirano, senior researcher at the Stockholm International Peace Research Institute (SIPRI), which measures annual military spending for most of the world's armed countries. The first is the drop in military spending after America's eight-year war in Iraq ended in 2011, and as operations in Afghanistan continued to wind down, Solmirano said.
"The second reason," said Solmirano, "is purely economics." With the U.S. facing a huge deficit crisis, Washington lawmakers agreed to make cuts to defense spending in 2011 and 2012. Solmirano added that barring the emergence of a new conflict, U.S. military spending likely will continue to fall.
Short-term changes in military spending often go hand-in-hand with periods of economic growth or financial crisis. Indeed, spending among nearly all the top European military powers declined last year.
Meanwhile, China increased its spending by nearly 8% between 2011 and 2012, and by more than 47% since 2008. This is partly for geopolitical reasons, explained Solmirano, who added that China's increase in spending has run "parallel to its increase in economic power as well."
Click through to see the five most expensive militaries in the world based on SIPRI's 2012 data. To see five more of the world's top military spenders, and for a full report, visit 24/7 Wall St.
More from 24/7 Wall St.
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Military expenditure: $59.8 billion
Expenditure as % of GDP: 2.5%
One-year spending change: -0.8%
Total exports: $351 million (10th highest)
Total imports: $254 million (17th highest)
Military spending in the United Kingdom fell for the second straight year in 2012. This was likely due, in part, to a slow GDP growth of less than 1% for the second straight year and a decline in government spending as a percentage of GDP for the third straight year. Early this year, the United Kingdom cut 5,000 troops from its armed forces as part of the nation's broad austerity measures.
The U.K. spent just 2.5% of GDP on the military in 2012 and exported just over $350 million in weapons. By contrast, 25 years earlier, the nation spent 4.0% of its annual GDP on its military and exported $2.5 billion worth of arms.
Expenditure as % of GDP: 2.5%
One-year spending change: -0.8%
Total exports: $351 million (10th highest)
Total imports: $254 million (17th highest)
Military spending in the United Kingdom fell for the second straight year in 2012. This was likely due, in part, to a slow GDP growth of less than 1% for the second straight year and a decline in government spending as a percentage of GDP for the third straight year. Early this year, the United Kingdom cut 5,000 troops from its armed forces as part of the nation's broad austerity measures.
The U.K. spent just 2.5% of GDP on the military in 2012 and exported just over $350 million in weapons. By contrast, 25 years earlier, the nation spent 4.0% of its annual GDP on its military and exported $2.5 billion worth of arms.
Military expenditure: $62.6 billion
Expenditure as pct. of GDP: 2.3%
One-year spending change: -0.3%
Total exports: $272 million (11th highest)
Total imports: $87 million (38th highest)
France's military budget of $62.6 billion in 2012 was higher than any other country in the European Union. However, this has declined every year since 2009, when military spending reached more than $69.4 billion.
And the military cuts are not over. In April, France announced it would freeze military spending, with an expected budget of roughly $235 billion for the next six years. By 2019, France is expected to reduce its armed forces headcount by 34,000, or nearly 10% of its current force. As of 2011, France had more active military members than all other countries in the EU at 362,485.
Expenditure as pct. of GDP: 2.3%
One-year spending change: -0.3%
Total exports: $272 million (11th highest)
Total imports: $87 million (38th highest)
France's military budget of $62.6 billion in 2012 was higher than any other country in the European Union. However, this has declined every year since 2009, when military spending reached more than $69.4 billion.
And the military cuts are not over. In April, France announced it would freeze military spending, with an expected budget of roughly $235 billion for the next six years. By 2019, France is expected to reduce its armed forces headcount by 34,000, or nearly 10% of its current force. As of 2011, France had more active military members than all other countries in the EU at 362,485.
Military expenditure: $90.6 billion
Expenditure as pct. of GDP: 4.4%
One-year spending change: 15.7%
Total exports: $3.8 billion (2nd highest)
Total imports: $8.2 million (74th highest)
Russia's military budget has grown significantly in the past several years. In 2008, Russia spent just under $68 billion, or 3.7% of GDP. By 2012, the military budget had shot up to $90.6 billion and 4.4% of GDP, after a 16% jump in spending between 2011 and 2012.
Russia has been upgrading its weapons over the past several years, working to replace aging Soviet-era submarines, assault ships and ballistic missiles. Russia was the second-largest exporter of weapons in 2012, shipping out more than $3.8 billion in arms. Russia has more self-propelled guns and Corvette missiles than any other country.
Expenditure as pct. of GDP: 4.4%
One-year spending change: 15.7%
Total exports: $3.8 billion (2nd highest)
Total imports: $8.2 million (74th highest)
Russia's military budget has grown significantly in the past several years. In 2008, Russia spent just under $68 billion, or 3.7% of GDP. By 2012, the military budget had shot up to $90.6 billion and 4.4% of GDP, after a 16% jump in spending between 2011 and 2012.
Russia has been upgrading its weapons over the past several years, working to replace aging Soviet-era submarines, assault ships and ballistic missiles. Russia was the second-largest exporter of weapons in 2012, shipping out more than $3.8 billion in arms. Russia has more self-propelled guns and Corvette missiles than any other country.
Military expenditure: $157.6 billion
Expenditure as pct. of GDP: 2.0%
One-year spending change: 7.8%
Total exports: $443 million (8th highest)
Total imports: $872 million (4th highest)
China increased its annual military spending from $107 billion in 2008 to more than $157 billion in 2012. Despite this increase, military expenditure as a percentage of GDP has remained relatively stable at around 2%. Even with GDP growth slowing to 7.8% in 2012, China has had one of the world's fastest growing economies for years.
Currently, China is embroiled in a tense dispute with Japan over the resource-rich Diaoyu islands (called the Senkaku islands in Japan). China also historically has had tense relations with Taiwan, which it still considers to be a breakaway province.
Expenditure as pct. of GDP: 2.0%
One-year spending change: 7.8%
Total exports: $443 million (8th highest)
Total imports: $872 million (4th highest)
China increased its annual military spending from $107 billion in 2008 to more than $157 billion in 2012. Despite this increase, military expenditure as a percentage of GDP has remained relatively stable at around 2%. Even with GDP growth slowing to 7.8% in 2012, China has had one of the world's fastest growing economies for years.
Currently, China is embroiled in a tense dispute with Japan over the resource-rich Diaoyu islands (called the Senkaku islands in Japan). China also historically has had tense relations with Taiwan, which it still considers to be a breakaway province.
Military expenditure: $668.8 billion
Expenditure as pct. of GDP: 4.4%
One-year spending change: -6.0%
Total exports: $6.2 billion (the highest)
Total imports: $670 million (6th highest)
The United States spends more on its military than any other country by a wide margin. America's military budget accounts for roughly 40% of all military spending in the world, according to SIPRI. However, U.S. military spending has declined since 2010 -- when it hit more than $720 billion -- largely due to a reduced presence in Iraq and Afghanistan.
The United States is by far the largest arms exporter in the world, selling more than $6.2 billion worth of arms in 2012. In June, the White House announced it was arming the opposition against Syrian President Bashar al-Assad's regime.
Expenditure as pct. of GDP: 4.4%
One-year spending change: -6.0%
Total exports: $6.2 billion (the highest)
Total imports: $670 million (6th highest)
The United States spends more on its military than any other country by a wide margin. America's military budget accounts for roughly 40% of all military spending in the world, according to SIPRI. However, U.S. military spending has declined since 2010 -- when it hit more than $720 billion -- largely due to a reduced presence in Iraq and Afghanistan.
The United States is by far the largest arms exporter in the world, selling more than $6.2 billion worth of arms in 2012. In June, the White House announced it was arming the opposition against Syrian President Bashar al-Assad's regime.
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