Migrant Remittances Hit $729 Billion to Reshape Global South Economies: UN
UNITED NATIONS, (APP – UrduPoint / Pakistan Point News – 15th Sep, 2026) Remittance inflows to low- and middle-income countries reached US$728.6 billion in 2025, nearly doubling over a decade, according to a new report from the UN’s International Fund for Agricultural Development (IFAD). These financial flows connect approximately 220 million migrants and diaspora members with 1.1 billion relatives globally, surpassing official development assistance and foreign direct investment in those regions.
"This report is about financial flows of extraordinary scale. But more importantly, it is about families," said Pedro de Vasconcellos, who manages IFAD’s Financing Facility for Remittances.
Behind the billions are transfers typically worth $300 to $400, sent nine or 10 times a year. IFAD states that last year’s total was more than four times global official development assistance and exceeded foreign direct investment to low and middle-income countries.
The growing importance of remittances makes families and economies vulnerable to changes affecting migrants abroad. This is particularly evident in Latin America and the Caribbean, where the United States remains the dominant source of remittances. The report warns that deportations, employment restrictions, or weaker labor demand can reduce both the number of senders and their ability to remit.
While figures currently show no broad decline, Central America is among the most exposed. Remittances equated to 30% of GDP in Honduras in 2025, 28% in El Salvador, and 27% in Nicaragua. A study cited by IFAD found that 61% of returnees surveyed in Guatemala had been the main income earner in their household, highlighting the impact of involuntary returns.
Latin America and the Caribbean recorded the fastest remittance growth of any region, rising 132% to $168.6 billion. Asia and the Pacific remained the largest recipient region, receiving $384.9 billion, or 53% of the global total. Africa received $124.2 billion in 2025, an increase of 86% over the decade, with Egypt overtaking Nigeria as the continent’s largest recipient.
Four men are in a cramped living space with a single lightbulb. One smokes, another uses a laptop, and two others sit on mattresses. The scene appears to be a shared or temporary living arrangement.
Approximately three-quarters of remittances go towards immediate needs such as food, shelter, and utilities. The remaining quarter is allocated to investments in education, health, and small businesses.
