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Luxembourg Military Spending

Military expenditure as % of GDP  MS.MIL.XPND.GD.ZS

Luxembourg's military spending was 1.00% in 2025, ranked 109th globally. This represents a 4.2% increase from 2024. Data from World Bank, covering 1960–2025.

1.00% +0.04% (+4.2%)
Year 2025 Rank #109 Global Peak 1.25% (1964) Source World Bank

Luxembourg Military Spending (1960–2025)

Overview

Luxembourg's military spending stood at 1.00% in 2025, a rise of +0.04% from 2024. Based on recent trends, this figure is projected to reach 1.00% by 2025. Luxembourg ranked 109th globally.

Luxembourg’s military expenditure has remained modest throughout the 66‑year series, averaging just above one percent of gross domestic product in 2025 (1.00 % of GDP, ranking 109th globally). The highest share was recorded in 1964 when spending reached 1.25 % of GDP, a level that has not been approached since the post‑war expansion of the armed forces. A pronounced decline followed, culminating in a trough of 0.36 % of GDP in 2013, after which the ratio gradually rebounded to its current position. Compared with peer nations of similar rank, Luxembourg’s spending is slightly lower than Jamaica’s 1.04 % and marginally above Cameroon’s 0.97 % in the same year, reflecting a consistent pattern of limited defence budgeting relative to larger economies. The upward trajectory since the 2013 low suggests a slow but steady increase, yet any substantial shift in regional security concerns or NATO commitments could accelerate the pace of future spending growth.

Data & projection

Year Military Spending YoY change Rank
2027* trend 1.22% - -
2026* trend 1.11% - -
2025* trend 1.00% - -
2025 1.00% +0.04% #109
2024 0.96% +0.19% #35
2023 0.77% +0.15% #24
2022 0.63% +0.15% #16
2021 0.47% −0.11% #9
2020 0.58% +0.03% #12
2019 0.55% +0.05% #16
2018 0.50% +0.01% #13
2017 0.50% +0.12% #13
2016 0.38% −0.04% #6
2015 0.42% +0.05% #7
2014 0.37% +0.01% #4
2013 0.36% −0.00% #5
2012 0.36% −0.02% #4
2011 0.38% −0.06% #5
Show all years (1960-2025)
* Linear trend extrapolation

Detected Pattern

Export Boom Cycle
Current account surplus with strong export growth (>15% YoY), reserve accumulation, and moderate GDP growth. Typical of commodity exporters during price surges.
Reserves YoY +161.0% GDP growth 6.9% C/A balance 5.0%
Occurred 768 times, 546 successful
Reserves YoY
+25.6%
GDP growth
4.0%
C/A balance
14.5%
Reserves YoY
+14.6%
GDP growth
3.7%
C/A balance
2.9%
Reserves YoY
+12.8%
GDP growth
43.8%
C/A balance
16.4%
Reserves YoY
+12.6%
GDP growth
6.0%
C/A balance
0.5%
Reserves YoY
+38.3%
GDP growth
5.0%
C/A balance
1.2%
Reserves YoY
+18.0%
GDP growth
2.9%
C/A balance
3.9%

Analysis

Luxembourg matched the Export Boom Cycle pattern in 2021. Historically, 71% of countries showing this pattern (546 out of 768) saw military spending improve within 24 months. View full analysis →

The news headlines indicate a significant push for increased European defense spending and strategic investment, driven by evolving geopolitical dynamics and NATO/EU initiatives. This broader regional trend suggests that Luxembourg, with its current military spending at 1.00%, is part of a collective environment where European nations are re-evaluating and potentially increasing their defense contributions.

Frequently Asked Questions

What is Luxembourg's military spending?▾

Luxembourg's military spending was 1.00% in 2025. Ranked 109th globally. This represents a 4.2% increase from the previous year.

What was the highest military spending in Luxembourg?▾

Luxembourg's military spending peaked at 1.25% in 1964.

What was the lowest military spending in Luxembourg?▾

The lowest military spending in Luxembourg was 0.36% in 2013.

How does Luxembourg rank in military spending?▾

Luxembourg ranks 109th globally in military spending as of 2025.

What is the World Bank indicator code for military spending?▾

The World Bank indicator code is MS.MIL.XPND.GD.ZS. Data sourced from World Bank.

What is the projected military spending of Luxembourg in 2025?▾

Luxembourg's military spending is projected to reach 1.00% by 2025 based on trend extrapolation.

What is the military spending of Luxembourg in 2025?▾

The military spending of Luxembourg in 2025 was 1.00%. This ranks 109th in the world.

Cite this page

APA
Luxembourg Military Spending. HistorySaid. Retrieved October 29, 2026, from https://historysaid.com/luxembourg/military-spending/
BibTeX
@misc{historysaid_luxembourg_military-spending, title = {Luxembourg Military Spending}, url = {https://historysaid.com/luxembourg/military-spending/}, publisher = {HistorySaid}, year = {2026} }

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