NATO regularly collects and publishes defence expenditure data from its Allies. This data is reported by each Ally’s Ministry of Defence and represents current and estimated future defence expenditure according to an agreed definition. The amounts reflect payments made by national governments to meet the needs of their armed forces, those of other Allies, or the Alliance as a whole. In addition to defence expenditure data, NATO also incorporates economic and demographic information from sources such as the Directorate-General for Economic and Financial Affairs of the European Commission and the Organisation for Economic Co-operation and Development.
Due to differences in sources and national GDP forecasts, as well as variations in the definition of NATO defence expenditure and national definitions, the figures presented in the report may differ significantly from those reported by the media, national authorities, or in national budgets. The report includes information on equipment expenditure, which covers major equipment and research and development related to major equipment, as well as personnel expenditure, which includes pensions paid to retirees. The data presented in the report is based on information available up to the cut-off date of 12 June 2024, with figures for 2023 and 2024 being estimates.
The data collected by NATO provides valuable insights into the defence expenditure of its Allies, allowing for comparisons and analysis of trends over time. By reporting on current and estimated future expenditure, NATO helps to ensure transparency and accountability in defence spending among its member countries. The inclusion of economic and demographic information from external sources further enhances the understanding of the context in which defence expenditure is made. This data serves as a valuable resource for policymakers, analysts, and the public in assessing the financial commitments of NATO member countries to collective defence and security.
Overall, the publication of defence expenditure data by NATO plays a crucial role in promoting transparency, accountability, and cooperation among Allies. By providing a comprehensive overview of current and estimated future expenditure, as well as incorporating economic and demographic information from external sources, NATO enables informed decision-making and facilitates dialogue on defence priorities and investments. The data presented in the report underscores the commitment of NATO member countries to meeting their defence needs and contributing to the collective security of the Alliance.
