New Zealand Military Spending

New Zealand’s military expenditure has fallen markedly since the early 1960s, declining from 2.69 percent of GDP in 1960 to a historic low of 0.99 percent in 2015, before a modest rebound to 1.15 percent in 2025, placing the country 104th worldwide. The all‑time peak of 3.02 percent occurred in 1980, a period when regional security concerns prompted heightened defence budgets across the Pacific. The recent figure matches that of Rwanda (1.15 percent) and exceeds Seychelles (1.12 percent) while remaining below the Republic of Congo’s 1.04 percent, underscoring New Zealand’s relatively restrained spending among comparable small‑state economies. Over the 66‑year span, the downward trajectory reflects a long‑term policy emphasis on diplomatic engagement and multilateral security arrangements rather than large‑scale force build‑up. Future shifts in the geopolitical environment, such as intensified great‑power competition in the Indo‑Pacific, could prompt a renewed rise in defence outlays, altering the current modest upward trend.