NATO's defense spending is projected to increase by 11% this year, reaching approximately $1.8 trillion (about 2,714 trillion won).
According to a report cited by Turkey's state-run Anadolu Agency on July 7, the core defense expenditure of NATO's 32 member countries is expected to total around $1.809 trillion, up from an estimated $1.629 trillion last year, marking an 11.1% increase. Based on 2021 exchange rates, this year's core defense spending is anticipated to be $1.484 trillion, a 5.6% rise from last year's estimate of $1.404 trillion.
Core defense spending refers to costs directly related to military needs, distinguishing it from indirect security expenditures such as investments in defense-related infrastructure.
By country, the United States is expected to account for about $1.033 trillion (57%) of NATO's total defense spending, representing more than half of the alliance's overall expenditure. Following the U.S. are Germany ($147 billion), the United Kingdom ($110 billion), France ($80 billion), Italy ($57 billion), Poland ($53 billion), Canada ($52 billion), and Turkey ($48 billion).
This year, NATO's average core defense spending as a percentage of GDP is projected to be 2.86%, an increase of 0.11 percentage points from last year's estimate of 2.75%. Lithuania (5.33%), Estonia (5.10%), Latvia (4.92%), Poland (4.68%), and Greece (3.65%) are expected to exceed NATO's target of 3.5% of GDP for core defense spending. The U.S. is projected at 3.17%, while major Western nations like Germany (2.69%), the United Kingdom (2.56%), France (2.22%), Italy (2.10%), and Canada (2.13%) are expected to fall short of the NATO average, remaining in the 2% range.
At last year's NATO summit in The Hague, member countries agreed to increase defense spending to 5% of GDP by 2035 (with core defense spending at 3.5% and indirect security costs at 1.5%) amid pressure from U.S. President Donald Trump.
Additionally, NATO Secretary General Jens Stoltenberg announced at the ongoing NATO summit in Turkey that billions of dollars in defense contracts are expected to be signed. On the same day, Swedish aerospace company Saab signed a contract to supply up to 10 'GlobalEye' early warning aircraft to a consortium of 10 countries, while representatives from 15 nations finalized a deal with European aerospace company Airbus for the purchase of aerial refueling aircraft.
* This article has been translated by AI.
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