In this article, we look at the top 5 NATO members that spend the most on military expenditure. To see more NATO countries’ defense spending, head to NATO Military Spending by Country: Top 20 Countries.
5. United Kingdom
Military spending as share of GDP: 2.16%
The United Kingdom was the fifth largest defense spender among NATO countries in terms of military expenditure as share of GDP in 2022. This year in 2023, prime minister Rishi Sunak has pledged to raise military spending by $6 billion over the next two years to prepare his country for threats posed by China and Russia. Major armament manufacturers like Lockheed Martin Corporation (NYSE:LMT) and Raytheon Technologies Corporation (NYSE:RTX) have sites in the UK.
4. Poland
Military spending as share of GDP: 2.42%
Poland was the fourth highest military spender among NATO members in terms of expenditure as share of GDP. It is estimated to have spent 2.42% of its GDP on defense. The government plans to touch 4% in 2023 and this decision has been driven by Russia’s invasion of Ukraine. In January this year, the Polish government entered a $1.4 billion contract with General Dynamics Corporation (NYSE:GD) to purchase 116 M1A1 Abrams tanks. The U.S is financing $200 million out of the total cost.
3. Lithuania
Military spending as share of GDP: 2.47%
Lithuania raised its military funding in 2022 by nearly 30% compared to 2021. As a result, it is estimated to have spent 2.47% of its GDP on defense, which includes a $495 million dollar deal to buy HIMARS from Lockheed Martin Corporation (NYSE:LMT). Northrop Grumman Corporation (NYSE:NOC) announced in June this year that it had successfully fielded its FAAD C2 System to modernize Lithuania’s air defense capabilities.
2. United States
Military spending as share of GDP: 3.46%
The United States is the largest military spender in the world, with an estimated spending of around $821 billion in 2022 – which accounts for 40% of all global spending that year. It is also the biggest military contributor to NATO. However, in terms of military spending as a share of GDP, it falls second on the list for NATO countries. Washington’s military spending has fallen from 3.64% of GDP in 2020 to 3.46% in 2022 which has allowed Greece to take the top spot.
1. Greece
Military spending as share of GDP: 3.54%
Greece tops the list of military spending by country for NATO members. It is estimated to have spent 3.54% of its GDP on defense expenditure in 2022. According to data released by NATO on military spending of its members between 2014 and 2022, Greece, the United Kingdom, and the United States have been the only three countries to have spent more than 2% of their GDPs on defense to meet NATO’s goal every year in this timespan of eight years. In June last year, Greece formally communicated to the US to purchase 20 F-35 fighter jets from Lockheed Martin Corporation (NYSE:LMT). Earlier, Athens had ordered 24 Rafale jets and three navy frigates from France worth 2.5 billion euros and 3 billion euros, respectively.
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