NATO defense spending surge fuels tech investment and European job growth

NATO partners are meeting in Turkey as defense budgets continue to rise for the eleventh straight year, with total spending projected to near $3 trillion in 2025 – about 2.5 % of global GDP. The growth is driven not only by traditional weapons but also by rapid adoption of artificial intelligence, robotics, automation and digital operating platforms, reshaping procurement and giving rise to new players such as data‑analytics firms.

Investments are also expanding into security‑related infrastructure – mobility, energy, ports, airports, shelters and cyber‑defence – which analysts estimate could generate up to 4.4 million jobs across Europe, including roughly 723 000 in Germany, and add about 1.5 % to the EU’s GDP. The spending is expected to raise German tax revenues by roughly €17 billion annually, though funding gaps and long approval timelines present challenges.