Nato Defence Spending: Who Spends the Most and What it Means for Allies

In recent news, Nato is reporting that 23 of its 32 members are expected to achieve the target level of spending on defense this year. This goal was set by the military alliance, with members pledging to spend at least 2% of the value of their economies on defense annually by 2024.

According to Nato estimates for 2024, Poland is set to be the top spender for the second consecutive year, allocating 4.1% of its GDP towards defense. Following closely behind, Estonia and the US are tied for second place at 3.4%. The UK ranks ninth on the list, currently spending 2.3% of its GDP on defense with plans to increase to 2.5% in the future. The average defense spending for Nato members in Europe and Canada is estimated at 2.0%.

The United States stands out as a global superpower, with military commitments across the world beyond just Nato. In 2024, the US had a GDP equivalent to all other Nato members and its defense spending accounted for two-thirds of the total Nato budget.

As defense spending by European Nato members and Canada has increased over the past decade, Nato members have also committed to allocating at least 20% of their defense expenditure towards acquiring and developing military equipment by 2024. All Nato members, except Belgium and Canada, are expected to achieve this target.

The US plays a crucial role within Nato, with approximately 85,000 troops stationed throughout Europe. Germany hosts the largest number of US forces in Europe, followed by Italy and the UK. Additionally, the US has a significant military presence in Japan, with over 50,000 troops stationed there. US forces also maintain a notable presence in the Middle East and the Gulf region.