Poland is projected to be the top spender at 4.48 percent of GDP, followed by neighboring Lithuania (4 percent) and Latvia (3.73 percent). Estonia follows, having allocated 3.38 percent of GDP to defense spending. Norway and the U.S. round out the top five.

Last year, Estonia was the second-highest spender after Poland.

For the first time, all 32 members of the alliance are on track to allocate 2 percent of GDP on defense spending.

The data shows several Eastern flank countries have proportionally spent more than the U.S. for the second year in a row.

NATO notes that the figures are estimates and the final figures could change.

How is Estonia strengthening its defense?

Estonia will spend over €10 billion on defense between 2026-2029.

The Ministry of Defense's development plan focuses on establishing a multi-layered air defense system, enhancing deep-strike capabilities and improving situational awareness. Estonia's firepower will eventually reach targets more than 300 kilometers away.

The state also plans to procure additional ammunition over the next five years.

Defense spending will surpass 5 percent of GDP every year between 2026-2029.

The future model for the Estonian Defense Forces (EDF) envisions improved situational awareness, more modern weaponry, greater ammunition stocks, as well as an increase in active-duty personnel and more advanced training, Minister of Defense Hanno Pevkur (Reform) said in July.

"If we look purely from the perspective of firepower, all branches of the armed forces are undergoing major upgrades. Our firepower will become greater and deeper — we will be able to engage the enemy from farther away. Our situational awareness will also be significantly better. This means our eyes, ears and overall intelligence-gathering capabilities will be on a completely different level," said Pevkur.

The minister emphasized that developing these new capabilities requires more active-duty personnel and changes in training.

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