World military expenditure reached $2.72 trillion in 2024, an increase of 9.4% from 2023 and the steepest year-on-year rise since at least the end of the Cold War, according to a report released by a leading conflict think tank on Monday.

Heightened geopolitical tension saw increased military spending in all world regions, with particularly rapid growth in both Europe and the Middle East, data from the Stockholm International Peace Research Institute (SIPRI) showed.

"Over 100 countries around the world raised their military spending in 2024," SIPRI said. "As governments increasingly prioritize military security, often at the expense of other budget areas, the economic and social trade-offs could have significant effects on societies for years to come," it said.

The war in Ukraine and doubts over U.S. commitment to the NATO-alliance saw military spending in Europe (including Russia) rise by 17%, pushing European military spending beyond the level recorded at the end of the Cold War.

Russia's military expenditure reached an estimated $149 billion in 2024, a 38% increase from 2023 and double the level in 2015. This represented 7.1% of Russia's GDP and 19% of all government spending.

Ukraine's total military expenditure grew by 2.9% to reach $64.7 billion, which amounts to 43% of Russia's spending. At 34% of GDP, Ukraine had the largest military burden of any country in 2024.

"Ukraine currently allocates all of its tax revenues to its military," SIPRI said. "In such a tight fiscal space, it will be challenging for Ukraine to keep increasing its military spending."

Military spending by the U.S. rose by 5.7% per cent to reach $997 billion, which was 66% of total NATO spending and 37% of world military spending in 2024.