Military Expenditure (% of GDP)
Defense spending as percentage of gross domestic product
- Unit
- Percent (%)
- Data Source
- World Bank (SIPRI Military Expenditure Database)
What It Measures
Military spending as a share of total economic output (GDP), showing the relative defense burden on the economy.
Why It Matters
Percentage of GDP reveals defense prioritization and sustainability. High percentages may indicate security threats, militarism, or unsustainable spending. Low percentages suggest security guarantees (alliances) or low threat perception.
How to Interpret
NATO target is 2% of GDP. Above 3% is considered high (Israel, Saudi Arabia). Below 1% suggests low militarization (Costa Rica abolished military) or reliance on allies (many European countries).
Limitations
GDP-based metrics don't account for absolute capacity. A wealthy country with 1% spending may have more capability than a poor country at 5%. Does not reflect military efficiency or effectiveness.