The Kabul Tribune (KT)— Remittances sent by migrants to low- and middle-income countries increased 94% between 2016 and 2025, far outpacing the 28% growth in the number of migrants from those countries, according to a new report from the U.N. International Fund for Agricultural Development.
The figures suggest the increase in remittances is not simply the result of more people migrating. On average, migrants living abroad are sending larger amounts of money to relatives back home.
About 220 million migrants and members of the diaspora support an estimated 1.1 billion relatives through these financial transfers, the report said.
“This report is about financial flows of extraordinary scale. But more importantly, it is about families,” Pedro de Vasconcellos, who manages IFAD’s Financing Facility for Remittances, told reporters at U.N. headquarters Monday.
Individual transfers typically range from $300 to $400 and are sent about nine or 10 times a year, he said.
The total amount sent home in 2025 was more than four times global official development assistance and exceeded foreign direct investment to low- and middle-income countries, according to IFAD.
Latin America Particularly Exposed
The growing dependence on remittances also leaves families and national economies vulnerable to changes affecting migrants in destination countries.
That risk is particularly evident in Latin America and the Caribbean, where the United States is the dominant source of remittances. IFAD warned that deportations, employment restrictions and weaker demand for migrant labor could reduce both the number of people sending money and the amounts they are able to send.
De Vasconcellos said the effects of tighter migration policies in the United States and Europe have not yet resulted in a broad decline in remittances.
“Figures right now do not show actually a reduction in remittances,” he said, adding that family needs tend to keep the flows resilient during periods of crisis.
Remittances accounted for 30% of Honduras’ gross domestic product in 2025, 28% in El Salvador and 27% in Nicaragua, highlighting the importance of the money transfers to some economies in the region.
A study cited by IFAD found that 61% of returnees surveyed in Guatemala had been the main income earners in their households, suggesting that involuntary returns can result in an abrupt loss of income for families left behind.
Remittances to Latin America and the Caribbean grew 132% over the decade to $168.6 billion, the fastest regional increase.
Asia and the Pacific remained the largest recipient region, receiving $384.9 billion in 2025, or 53% of the global total. Africa received $124.2 billion, an 86% increase over the decade, with Egypt overtaking Nigeria as the continent’s largest recipient.
Remittances Support Basic Needs
About three-quarters of remittances are used for immediate needs such as food, shelter and utilities, IFAD said. The remaining quarter — more than $180 billion annually — goes toward health care, education, housing, savings and businesses.
Nearly $233 billion, or about one-third of all remittances, reached rural economies in 2025, where access to jobs, financial services and infrastructure is often limited.
Households receiving remittances also invest an estimated $22 billion each year in rural agrifood systems.
The report said remittances can also help families respond to climate-related shocks by replacing lost income and supporting recovery after disasters.
De Vasconcellos cautioned that remittances are private family resources and cannot replace public investment, social protection, humanitarian assistance or climate finance.
Digital Transfers Remain Costly
More than half of remittance transfers now begin digitally, but many still end with recipients collecting cash. Only 35% of services measured in 2025 were fully digital from sender to recipient.
Digital transfers cost an average of about 4.6%, compared with 7.3% for non-digital services, according to IFAD.
“Technologies really can help. But it’s not enough,” de Vasconcellos said, emphasizing the need for reliable and affordable ways for families to receive and use the money.
IFAD is calling for cheaper and more transparent remittance services, greater access to financial services and more opportunities for recipient families to save, obtain insurance and invest the money to strengthen their long-term resilience.
IOM/Elyor Nematov Central Asian migrants in Russia, whose families depend on remittances.
