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Nepal Military Spending

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

Nepal's military spending was 0.90% in 2025, ranked 118th globally. This represents a 8.1% decrease from 2024. Data from World Bank, covering 1970–2025.

0.90% −0.08% (-8.1%)
Year 2025 Rank #118 Global Peak 1.69% (2005) Source World Bank

Nepal Military Spending (1970–2025)

Overview

Nepal's military spending stood at 0.90% in 2025, a decline of +0.08% from 2024. Based on recent trends, this figure is projected to reach 0.90% by 2025. Nepal ranked 118th globally.

Nepal’s military outlays have remained modest, averaging 0.90 percent of gross domestic product in 2025, which places the nation at 118th in the world according to the World Bank. The share rose from a low of 0.59 percent in 1970, the all‑time trough, to a peak of 1.69 percent in 2005 before retreating to current levels. Over the 56‑year series, the trajectory shows a brief escalation in the early 2000s, likely linked to internal security challenges, followed by a gradual re‑alignment with fiscal priorities that emphasize development spending. Nepal’s 2025 figure is closely aligned with peers such as Paraguay (0.88 percent) and Peru (0.93 percent), suggesting a regional pattern of limited defense budgets relative to larger economies. Future shifts in the proportion of GDP devoted to the armed forces will depend on geopolitical developments, domestic stability and the government’s willingness to reallocate resources toward security or other sectors.

Data & projection

Year Military Spending YoY change Rank
2027* trend 0.73% - -
2026* trend 0.82% - -
2025* trend 0.90% - -
2025 0.90% −0.08% #118
2024 0.98% −0.09% #37
2023 1.07% −0.09% #39
2022 1.16% −0.06% #47
2021 1.22% −0.11% #54
2020 1.32% +0.09% #55
2019 1.24% −0.11% #56
2018 1.35% −0.13% #75
2017 1.48% +0.02% #85
2016 1.47% +0.10% #83
2015 1.37% −0.07% #81
2014 1.43% +0.09% #81
2013 1.34% +0.10% #73
2012 1.24% −0.11% #69
2011 1.35% −0.02% #70
Show all years (1970-2025)
* Linear trend extrapolation

Detected Pattern

Stagflation Risk
GDP growth below 2% combined with inflation above 8% and rising unemployment. The worst macro combination for policymakers.
Inflation 8.8% GDP growth 0.4% Unemployment 10.7%
Occurred 307 times, 117 successful
Inflation
26.9%
GDP growth
-4.2%
Unemployment
14.6%
Inflation
185.7%
GDP growth
-14.0%
Unemployment
60.8%
Inflation
14.4%
GDP growth
1.1%
Unemployment
9.1%
Inflation
33.9%
GDP growth
-1.5%
Unemployment
17.0%
Inflation
736.1%
GDP growth
1.7%
Unemployment
9.4%
Inflation
13.6%
GDP growth
1.3%
Unemployment
14.1%

Analysis

Nepal matched the Stagflation Risk pattern in 2016. Historically, 38% of countries showing this pattern (117 out of 307) saw military spending improve within 24 months. View full analysis →

Frequently Asked Questions

What is Nepal's military spending?▾

Nepal's military spending was 0.90% in 2025. Ranked 118th globally. This represents a 8.1% decrease from the previous year.

What was the highest military spending in Nepal?▾

Nepal's military spending peaked at 1.69% in 2005.

What was the lowest military spending in Nepal?▾

The lowest military spending in Nepal was 0.59% in 1970.

How does Nepal rank in military spending?▾

Nepal ranks 118th 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 Nepal in 2025?▾

Nepal's military spending is projected to reach 0.90% by 2025 based on trend extrapolation.

What is the military spending of Nepal in 2025?▾

The military spending of Nepal in 2025 was 0.90%. This ranks 118th in the world.

Cite this page

APA
Nepal Military Spending. HistorySaid. Retrieved October 31, 2026, from https://historysaid.com/nepal/military-spending/
BibTeX
@misc{historysaid_nepal_military-spending, title = {Nepal Military Spending}, url = {https://historysaid.com/nepal/military-spending/}, publisher = {HistorySaid}, year = {2026} }
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