Greg Scoblete summarizes a study:

According to a new report from the International Institute for Strategic Studies, Saudi Arabia devotes the greatest percentage of its GDP (some 10.5 percent) to defense. The U.S. comes in second at a little over 4.5 percent. China sizes up at under 2 percent of its GDP. The U.S. continues to spend the most in absolute dollars, accounting for 60 percent of the world's total defense spending. 

The Economist graphs these numbers.

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