Source page: McKinsey & Company
Commentary
Defense spending surge
Defense | Europe
August 30, 2023 – The invasion of Ukraine has sparked an increase in defense spending among many European and NATO countries. Senior partner Olivia White and colleagues find that countries closest to Russia and Ukraine, such as Poland, Estonia, and Lithuania, show the steepest rise. In addition, some NATO countries that are less proximate have announced plans to meet the defense-spending target of 2 percent of GDP over a longer timeline.

To read the article, see “War in Ukraine: Twelve disruptions changing the world—update,” July 28, 2023.
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Visual form
Country-by-country defense-spending comparison chart. It overlays 2021 spending, the 2021 NATO benchmark, and the 2023 NATO benchmark on the same country list.
Layout / body structure
The chart runs across a long list of countries from Poland through Luxembourg, with each country aligned to the same percent-of-GDP scale. Reader scans left to right to see which countries are already above the benchmark and which remain below it.
What is being compared
It compares estimated 2023 NATO defense spending as a share of GDP across border states, former Eastern bloc countries, and other NATO members, while showing the reference position of 2021 spending and the NATO target.
Measurement system
The y-axis is defense spending as a percent of GDP. Reference lines and markers distinguish 2021 spending, the 2021 NATO average, the 2023 NATO average, and the 2 percent NATO target.
Visible structure inside the graphic
The chart uses country labels along the bottom, a horizontal target line at 2 percent, and overlaid markers or line segments for the two comparison years. That lets the viewer see not only the current level but also how far and how fast each country moved.
Main takeaway from the visual
Defense spending accelerated most in countries closest to Russia and Ukraine, while many other NATO members moved more gradually toward the target. The chart is explicitly designed to show geographic intensity rather than one uniform alliance-wide shift.
Key standout values or extremes
Poland and the Baltic states appear at the high-spending end of the country list, clearly above the 2 percent target, while several Western European countries remain closer to or below the benchmark. The strongest visual cue is the upward shift in the border and former Eastern bloc countries after the invasion of Ukraine.
Controls / sequence, when applicable
This is a static chart image with no in-chart controls to operate.
Companion media, when applicable
There is no separate companion audio or video; the chart image is the full visual on this page.