VIENNA — America’s allies now outspend it in purchasing power-adjusted defense budgets, a new analysis by the Economist shows. Using data on global defense budgets collected annually by the Stockholm International Peace Research Institute, SIPRI, the London-based weekly calculated that American allies in the North Atlantic and Indo-Pacific spent 111% of what the U.S. did on its own defense in 2025. The countries included in the tally are the 31 non-U.S. NATO members plus Washington’s treaty