The report pointed out that more than 100 countries increased their military budgets last year.
The US, the world's largest spender, increased the expenditure by 5.7% to $997 billion.
Spending by Europe rose by 17% to $693 billion.
In Germany, the figure soared by 28% to reach $88.5 billion, making it the largest spender in Central and Western Europe.
The UK upped the spending by 2.8% to $81.8 billion.
Ukraine's spending grew by 2.9% to stand at $64.7 billion.