The Netherlands ranks 7th on defence expenditure among NATO members

© ANP

Erratum:

In a previous version of this article, it was not made clear that the NATO figures cited are estimates published in June 2024. The text has now been amended to reflect this.
The Netherlands ranks seventh among the 32 NATO countries in terms of defence expenditure per capita. Dutch defence expenditure was estimated at 1.1 thousand euros per capita in 2024. At the top of the list is the United States (US) at 2.6 thousand euros per capita. Norway, Denmark, Finland, Sweden and the United Kingdom rank between the US and the Netherlands. Statistics Netherlands (CBS) reports this based on estimates from NATO dating from June 2024.

Total defence spending by the Netherlands was 19.9 billion euros in 2024, according to the NATO estimate for that year. By comparison, total defence spending by NATO members was 1,362 billion euros, of which the US contributed around 894 billion. Average per capita spending for NATO was 1,394 euros, but excluding the US contribution it would have been 733 euros. Defence expenditure per capita in the Netherlands was somewhere in between these two levels, at 1,105 euros.

Adjusted for purchasing power differences, Poland spends much more

There are differences in purchasing power between countries. In Romania, for instance, less money is needed to pay the wages of military personnel and to cover local expenses than in the Netherlands. It is therefore useful to adjust for purchasing power differences when comparing between countries. When it comes to the ability to import weapons, however, the unadjusted figures provide a clearer picture.

The US remains in first place after adjusting for differences in purchasing power, but the difference with Norway, in second place, is smaller. With the US currently as the most expensive NATO country, all member states move closer to the US position in this comparison. The Netherlands' per capita expenditure in this calculation amounts to 1,328 euros (the US was used as a benchmark, resulting in a US per capita expenditure of 2,641 euros).

The Netherlands drops from seventh place to tenth place in these calculations. Spending by countries such as Poland, Estonia and Latvia, in particular, is much higher after adjusting for purchasing power differences, and Poland rises to third place among all 32 NATO countries.


Netherlands above 2 percent of GDP in 2024, according to estimate

According to the NATO estimate, in 2024 the Netherlands met the traditional NATO standard again for the first time since the early 1990s: expenditure was just over 2 percent of the size of the economy, or gross domestic product (GDP). This puts the Netherlands in 20th place among NATO countries. Poland is at the top of the list with 4.1 percent of GDP. Estonia and the US share second place with 3.4 percent of GDP.

In response to Russia's invasion of Ukraine in 2022, many countries have increased their spending on defence substantially over the last two years. In relative terms, US defence spending has remained at the same level. Greece's defence spending has fallen significantly, although Greece remains well above the NATO standard.

Sources