Money sent home by migrants has almost doubled in a decade

These transfers, known as remittances, grew by 94 percent between 2016 and 2025, far exceeding the 28 percent increase in the number of migrants from these countries.

This gap shows that growth is not simply caused by more people migrating: on average, overseas migrants send greater numbers of migrants to their countries.

A number of The 220 million migrants and diaspora support around 1.1 billion relatives.

“This report is about financial flows on an extraordinary scale. But more importantly, it is about families,” Pedro de Vasconcellos, who manages IFADFinancing Facilities for Remittances, told journalists at UN Headquarters, Monday.

Behind those billions transfers are typically $300 to $400sent nine or 10 times a year, he explained.

IFAD stated that the total repatriated last year was more than four times global official development assistance and also beyond foreign direct investment into low- and middle-income countries.

Vulnerable America

The growing importance of remittances also makes families and economies vulnerable to changes affecting migrants abroad.

This is especially visible in Latin America and the Caribbean, where the United States remains the dominant source of remittances.

The report warns against that deportations, employment restrictions, or weakening labor demand could reduce the number of people sending money and their ability to send money.

When asked about stricter migration policies in the United States and Europe, de Vasconcellos said the impact has not been seen as a widespread decline.

“Current figures do not show a real decline in remittances,” he said, adding that family needs tend to maintain flow resilience during crises.

Key cash injection

Central America is one of the countries most affected. Remittances are equivalent to 30 percent of GDP in Honduras by 2025, 28 percent in El Salvador, and 27 percent in Nicaragua.

A study cited by IFAD also found this 61 percent of returnees surveyed in Guatemala were the primary breadwinners in their householdsshows how forced return can result in a sudden loss of income for the relatives left behind.

Latin America and the Caribbean saw the fastest growth in remittances of any region, increasing 132 percent to $168.6 billion.

Asia and the Pacific remained the largest recipient region overall, receiving $384.9 billion, or 53 percent of the global total.

Africa received $124.2 billion by 2025, an increase of 86 percent over the decade, with Egypt overtaking Nigeria as the largest recipient on the continent.

A lifeline for the family

About three-quarters of remittances are used for immediate needs such as food, shelter and utilities. The rest – more than $180 billion annually – goes to health care, education, housing, savings and businesses.

Nearly $233 billion – roughly one dollar for every three people repatriated – reaches the rural economy by 2025, where access to jobs, financial services and public infrastructure is often at its weakest. Households receiving remittances also invest approximately $22 billion annually in rural agri-food systems.

The report also highlights their role in helping families cope with climate change-related shocks, from replacing lost income to rebuilding households after disasters.

But Mr. de Vasconcellos stressed that these were the family’s personal resources and “cannot replace” public investmentsocial protection, humanitarian aid or climate finance.

Digital, but still expensive

More than half of money transfers now begin digitally, but many still end in cash collection. Only 35 percent of services measured in 2025 will be fully digital from sender to recipient.

Digital transfers are cheaper, with an average fee of around 4.6 percent compared to 7.3 percent for non-digital services.

“Technology can really help. But it’s not enough,” de Vasconcellos said, stressing that families also need reliable and affordable ways to receive and use the money.

IFAD calls for cheaper and more transparent aid, better access to financial services and more opportunities for families to save, self-insure and invest so they can build greater resilience over time.