Israel vs. Iran Military Spending Ratio Over Two Decades

Economics & Macro

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Erlina Fury Santika 19/06/2025 18:50 WIB

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According to SIPRI data, Iran and Israel have different military expenditure-to-GDP ratios. Both countries are currently observed to be conducting attacks.

Israel and Iran's Military Expenditure as a Percentage of GDP (2000-2024)

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Israel and Iran's Military Expenditure as a Percentage of GDP (2000-2024)

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The Stockholm International Peace Research Institute (SIPRI) compiled the ratio of military expenditure to gross domestic product (GDP) for two countries currently at war: Israel and Iran.

Over two decades, Israel's military expenditure-to-GDP ratio has been significantly higher than Iran's.

Israel's ratio has generally been above 5% of GDP, with only 2021 and 2022 showing lower figures of 4.9% and 4.4% respectively. The latest data for 2024 shows a surge to 8.8%, the highest in the last 20 years.

Meanwhile, Iran's proportion has remained in the 2%-3% range of GDP. Its highest figure was 3.3% in 2006—considerably lower than Israel's.

Interestingly, when measured by government budget allocation for military spending, the proportions for both countries are not so far apart. From 2000-2022, both countries' government spending on military was in the 11%-19% range.

However, the latest data for 2023 shows a significant increase in Israel's military spending to 20% of its total government expenditure, while Iran's remained at 12.5%. The increase in Israel's spending is believed to be due to the massive attacks on Palestine during the October 7, 2023 tragedy.

Support for Both Countries

According to Katadata, Iran and Israel each receive support from several countries. Aid to Israel tends to be formally declared by several Western nations.

Support for Iran, on the other hand, comes largely from militia groups in the Middle East. Countries supporting Iran tend to express their support through statements of sympathy and concern. The following are the countries or groups supporting Israel and Iran:

Iran's supporters include:

Houthis (Yemen)
Hezbollah (Lebanon)
Russia
North Korea

Israel receives support from the G7 group. This group concluded their meeting in Kananaskis, Alberta, Canada on Tuesday, June 17, 2025. They declared their support for Israel and labeled Iran as a source of instability in the Middle East.

"We affirm that Israel has the right to defend itself. We reiterate our support for Israel's security," said the G7 leaders in a statement as quoted by Reuters on Tuesday (June 17). "Iran is a major source of regional instability and terror," the G7 statement continued.

The following G7 leaders support Israel:

President of the United States (US) Donald Trump
Prime Minister of the United Kingdom Keir Starmer
President of France Emmanuel Macron
Prime Minister of Japan Shigeri Ishiba
Prime Minister of Italy Giorgia Meloni
Prime Minister of Canada Mark Carney
Chancellor of Germany Friedrich Merz
President of the European Commission Ursula von der Leyen
President of the European Council Antonio Costa.

(Read Katadata: List of Countries Supporting Iran and Israel in the Middle East War)

Editor : Erlina Fury Santika

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."

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Israel vs. Iran Military Spending Ratio Over Two Decades

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