Military Expenditure in Germany, 1960-2022

Germany's military expenditure as a percentage of GDP exhibited significant fluctuations over the decades, reflecting the country's evolving geopolitical landscape and economic priorities. During the early 1960s, military spending ranged between 3.8% and 4.9%, peaking in 1963. This increase aligned with Cold War tensions and the establishment of NATO's defense posture in Europe. However, expenditures steadily declined in the 1970s, stabilizing around 3.0% by the late 1970s as détente between the East and West reduced immediate military threats.

The post-Cold War era marked a significant reduction in spending, with expenditures dropping from 2.5% of GDP in 1990 to 1.4% by the early 2000s. This shift reflects Germany's focus on reunification and economic restructuring. Recent years, however, have seen a modest uptick in military investment, reaching 1.4% in 2020 and 2022, influenced by NATO commitments and rising global security concerns.