This is How Much NATO Countries Spend on Defense
This Is How Much NATO Countries Spend on Defense
The North Atlantic Treaty Organization (NATO) exists for the sole purpose of facilitating a political and military alliance between almost 30 countries. All are obligated to one another in times of war, but some countries have much stronger militaries and defense systems than others.
Using data from NATO, this map reveals what each NATO member country spends on its own national defense.
Note: Numbers are 2021 projections.
Biggest NATO Defense Spenders
The U.S. spends more on defense than any other NATO country.
According to the 2021 estimates, U.S. defense spending will be close to $811 billion this year. On the other hand, the defense spending of all other NATO countries combined is projected to be $363 billion, meaning the U.S. will outspend all other countries by a whopping $448 billion.
|Rank||Country||Millions (USD) 2021p||Change (2014-2021)|
|#1||🇺🇸 United States||$811,140||24.0%|
|#2||🇬🇧 United Kingdom||$72,765||10.8%|
|#16||🇨🇿 Czech Republic||$4,013||103.2%|
|#28||🇲🇰 North Macedonia||$219||76.6%|
NATO is based on building up forces and equipment for the goal of joint security and defense. And, despite the pandemic, many members did increase their spending in 2020.
However, not all countries contribute equally. The agreed-upon target for European NATO members, for example, is to spend 2% of GDP on defense by 2024, but many countries are not on track to meet this goal.
Who Pays for NATO Itself?
One of the key pillars of NATO is collective defense: a commitment to the idea that an act of violence against one or more of its member states is an act of aggression towards all.
Collective defense, cooperative security, and crisis management are at the heart of NATO’s purpose and operations.
Apart from defense spending, running a transcontinental political alliance costs around $3 billion annually. So which countries foot the bill for these expenses?
|Country||Cost Share Arrangements
|🇺🇸 United States||16.36%|
|🇬🇧 United Kingdom||11.29%|
|🇨🇿 Czech Republic||1.06%|
Members have pre-arranged mechanisms to divide NATO alliance expenses evenly.
Getting into specifics, the members are paying for:
- Civilian staff wages and overhead costs of running NATO headquarters.
- Running strategic commands, joint operations, early warning and radar systems, training, etc.
- Defense communications systems, harbors, airfields, and fuel supplies.
The Future of NATO
While outright nation-on-nation conflict is becoming more rare, threats to the collective security of NATO allies have not disappeared.
While countries may have differing opinions over the exact amount each should contribute, rising expenditures are a sign that NATO is still a priority for the near future.
Charted: Public Trust in the Federal Reserve
Public trust in the Federal Reserve chair has hit its lowest point in 20 years. Get the details in this infographic.
- Gallup conducts an annual poll to gauge the U.S. public’s trust in the Federal Reserve
- After rising during the COVID-19 pandemic, public trust has fallen to a 20-year low
Charted: Public Trust in the Federal Reserve
Each year, Gallup conducts a survey of American adults on various economic topics, including the country’s central bank, the Federal Reserve.
More specifically, respondents are asked how much confidence they have in the current Fed chairman to do or recommend the right thing for the U.S. economy. We’ve visualized these results from 2001 to 2023 to see how confidence levels have changed over time.
Methodology and Results
The data used in this infographic is also listed in the table below. Percentages reflect the share of respondents that have either a “great deal” or “fair amount” of confidence.
|Year||Fed chair||% Great deal or Fair amount|
Data for 2023 collected April 3-25, with this statement put to respondents: “Please tell me how much confidence you have [in the Fed chair] to recommend the right thing for the economy.”
We can see that trust in the Federal Reserve has fluctuated significantly in recent years.
For example, under Alan Greenspan, trust was initially high due to the relative stability of the economy. The burst of the dotcom bubble—which some attribute to Greenspan’s easy credit policies—resulted in a sharp decline.
On the flip side, public confidence spiked during the COVID-19 pandemic. This was likely due to Jerome Powell’s decisive actions to provide support to the U.S. economy throughout the crisis.
Measures implemented by the Fed include bringing interest rates to near zero, quantitative easing (buying government bonds with newly-printed money), and emergency lending programs to businesses.
Confidence Now on the Decline
After peaking at 58%, those with a “great deal” or “fair amount” of trust in the Fed chair have tumbled to 36%, the lowest number in 20 years.
This is likely due to Powell’s hard stance on fighting post-pandemic inflation, which has involved raising interest rates at an incredible speed. While these rate hikes may be necessary, they also have many adverse effects:
- Negative impact on the stock market
- Increases the burden for those with variable-rate debts
- Makes mortgages and home buying less affordable
Higher rates have also prompted many U.S. tech companies to shrink their workforces, and have been a factor in the regional banking crisis, including the collapse of Silicon Valley Bank.
Where does this data come from?
Source: Gallup (2023)
Data Notes: Results are based on telephone interviews conducted April 3-25, 2023, with a random sample of –1,013—adults, ages 18+, living in all 50 U.S. states and the District of Columbia. For results based on this sample of national adults, the margin of sampling error is ±4 percentage points at the 95% confidence level. See source for details.
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