Baltic: Defence spending relative to GDP among highest in NATO: report

Defence spending as a percentage of GDP in the Baltic States is among the highest in NATO, according to the Tallinn-based International Centre for Defence and Security (ICDS), LSM reports. The study shows that Estonia’s overall defence expenditure amounts to 3.43% of GDP, which is third-highest in NATO after Poland (4.12%) and the US (3.72%). Latvia comes in fourth with 3.15%. Meanwhile, Lithuania’s defence spending is now at 2.85% of GDP. Estonia’s long-term plan foresees lower defence spending at 3.13% of GDP in 2025, at 3.11% in 2026, and at 3.03% in 2027. In Latvia, the government targets defence spending to reach 3.00% of GDP in 2026, while Lithuania’s aim is to raise defence expenditure to 3.00% over 2025-2030, the ICDS report details.