Last year, the economic impact of violence reached $19.1 trillion, or $717 billion higher than the previous year.

This came as conflict deaths hit 25-year highs, and wars continued in the Ukraine and Gaza. In response to heightened geopolitical tensions, European nations have injected billions into defense spending. Even Japan plans to double its defense spending to 2% of GDP.

This graphic, via Visual Capitalist's Dorothy Neufeld, shows the global cost of conflict in 2024, based on analysis from the Institute for Economic and Peace.

Below, we show the economic impact of violence worldwide, with figures including direct and indirect costs:

In 2024, military spending grew by $540 billion to reach $9 trillion.

Overall, 84 countries increased spending on military as a share of GDP, with Norway, Denmark, and Bangladesh seeing the greatest jumps. U.S. military spending totaled $949 billion, while China followed at $450 billion, in international dollars.

As the second-highest cost, internal security expenditure hit $5.7 trillion. This includes costs associated with policing and the judicial system.

Meanwhile, GDP losses causes by conflict surged 44% in 2024 to reach $462 billion. Compared to 2008, GDP losses have more than quadrupled, while the cost of conflict deaths has followed a similar trend.

Adding to this, the cost of refugees and internally displaced persons (IDPs) had an economic toll of $343 billion. Today, 122 million people globally are forcibly displaced, more than doubling from 2008.

To learn more about this topic, check out this graphic on Europe’s biggest armies.