NATO released its annual defense spending report, showing that 23 of 32 member countries, including Finland and Sweden, met the 2% GDP spending commitment in 2024. This marks the first time all members have met the target since it was set in 2014. The alliance also agreed to a new goal of spending 5% of GDP on defense by 2035, with Spain being the only country opting out.

📊 In 2024, 23 out of 32 NATO member countries met the 2% GDP defense spending target, with Finland and Sweden among them. This is the first time since the target was established in 2014 that all members have complied.

🌍 The alliance has set a new goal of spending 5% of GDP on defense by 2035, aiming for 3.5% on core defense requirements and the remainder on other defense and security-related spending. Spain is the only country not participating in this goal, opting for a 2.1% GDP spend.

📈 NATO's data indicates that all 32 members are expected to meet the 2% spending commitment in 2025, based on estimated defense spending and economic growth figures for 2024 and 2025.

The North Atlantic Treaty Organization (NATO) recently released its annual defense spending report that details how much money members of the mutual security alliance are spending on their defense and which are meeting their commitments.

In 2014, the heads of state and government for all NATO member countries committed to spending at least 2% of their gross domestic product (GDP) on defense to boost the alliance's military readiness amid Russia's illegal annexation of Crimea from Ukraine and instability in the Middle East. The 2% guideline built on a prior 2006 commitment made by NATO defense members.

At the time of the 2014 pledge, only three NATO members — the U.S., the U.K. and Greece — were at the 2% threshold. That figure rose to nine by 2020, fell to six in 2021 but rebounded to seven in 2022 after Russia's invasion of Ukraine. It then ticked up to 10 in 2023, and 2024 saw 23 of the 32 member countries, including newly ratified members Finland and Sweden, meet the threshold.

NATO's latest data shows that all 32 members of the alliance are expected to meet the 2% spending commitment in 2025, based on the estimated defense spending and economic growth figures used for the 2024 and 2025 figures. It marks the first time since the spending target was created that all members have been in compliance.

NATO COUNTRIES AGREE TO SPEND 5% OF GDP ON DEFENSE: WHICH COUNTRIES LED IN 2024?

Earlier this year, nearly all NATO members agreed to a new goal of spending 5% of GDP on defense by 2035, a figure that sets a goal of spending 3.5% of GDP on core defense requirements to meet NATO capability goals, with the remainder potentially allocated to other defense and security-related spending. The lone country to opt out was Spain, which said it can meet its military requirements by spending just 2.1% of GDP.

Here's a look at how much NATO says member countries are estimated to spend on defense this year, as well as when member countries met the original 2% threshold. 

(Note: NATO's latest data doesn't include Germany's defense spending levels, though the country reached the 2% threshold last year and plans to ramp up spending further in the years ahead. It also excludes Iceland, which doesn't have a defense budget but contributes in other ways.)

NATO WARNS RUSSIA AFTER POLAND SHOOTS DOWN 'HUGE NUMBER' OF DRONES THAT VIOLATED ITS AIRSPACE

RUSSIAN CRUISE MISSILES HIT US COMPANY IN MASSIVE UKRAINE STRIKE AMID TRUMP'S PEACE PUSH

GET FOX BUSINESS ON THE GO BY CLICKING HERE