Remittances nearly doubled in a decade to reach US$729bn in 2025, new IFAD report finds
Remittance inflows to low- and middle-income countries reached US$728.6bn in 2025 – more than four times global official development assistance that year and greater than foreign direct investment to those countries, according to a new report launched today by the International Fund for Agricultural Development (IFAD).
The report, Sending Money Home 2026. Beyond remittances: From lifeline to resilience – one family at a time, finds that remittances have remained one of the world’s largest and most consistent sources of household finance over the past decade, helping families meet basic needs, build resilience and invest in their futures, even in times of crisis.
Since 2016, remittance flows have increased by 94 per cent, outpacing both population growth and emigration from low- and middle-income countries. The report estimates that 220 million migrants and diaspora members support 1.1 billion relatives, meaning roughly one in six people worldwide are connected through remittances.
“As remittances help families meet their basic needs, they are also building financial growth and resilience to shocks,” said Alvaro Lario, president of IFAD. “Their potential benefits are greatest when families have access to affordable and trusted financial services, together with the knowledge, freedom and appropriate options to use their resources according to their own needs and aspirations,” added Lario.
Almost one in three dollars sent home by migrants – an estimated US$233bn -reached rural areas, where access to formal employment, financial services and public infrastructure is frequently weakest and where these flows can have significant impact.
According to the report, remittance-receiving families invest an estimated US$22bn each year in rural agrifood systems, supporting agricultural production, rural enterprises and employment.
“The impact of remittances in rural areas extends beyond recipient households into surrounding economies, supporting local businesses, jobs and food systems,” said Lario. “For millions of rural families, receiving remittances can be the first step towards generating savings and accessing insurance and appropriate credit. They can also serve as a pathway towards greater resilience in the face of economic and climate-related shocks. In many contexts, this helps expand opportunities so that migration becomes a choice rather than a necessity.”
The findings highlight opportunities for policymakers to strengthen the impact of remittances on resilience, financial inclusion and economic opportunity while recognizing that these private flows cannot replace public investment, social protection or climate finance.
It is estimated that more than half of remittances now begin through a digital channel, which has led to cheaper transfers. However, cash is still a prevalent method in many corridors. Only 35% of the services measured in 2025 were fully digital at both the sending and receiving ends.
The report calls on governments, regulators, financial institutions and development partners to make transfers more affordable and transparent, better serve rural areas, strengthen financial and digital capabilities, and expand families’ access to savings, insurance, appropriate credit and investment opportunities.
Key regional findings:
- Asia and the Pacific remains the centre of the global remittance economy, receiving US$384.9bn, or 53% of the total covered by the 10-year report.
- Latin America and the Caribbean recorded the fastest growth; remittances to the region increased by 132% over the decade, reaching US$168.6bn.
- Remittance inflows to Africa rose by 86 per cent, to US$124.2bn.
- In 23 countries, remittances represent more than 10% of gross domestic product. In nine countries, remittance inflows exceed the total value of exports of goods and services.