Allies Surpass US in Military Budget Purchasing Power, New Report Reveals
A new analysis by the Economist, using data from the Stockholm International Peace Research Institute (SIPRI), reveals that America's allies have surpassed the US in purchasing power-adjusted defense budgets. In 2025, the combined defense spending of US allies in the North Atlantic and Indo-Pacific regions reached 111% of the US's own defense budget. This marks a significant shift in global defense spending dynamics, with allies such as Japan, South Korea, and NATO members increasing their military expenditures. The report highlights that while the US remains the largest single military spender, its allies' budgets have grown due to factors like European rearmament in response to Russia's actions in Ukraine. 
