Global Aid Slashed: OECD Reports Record Drop in 2025

Overseas aid from wealthy nations fell by 23.1% in 2025, marking the biggest year-on-year reduction ever, according to the OECD. Budget cuts driven by political and fiscal pressures mainly in the U.S. led to this drop. OECD projects further decline amid ongoing global challenges.

In a significant development, overseas aid from the world's wealthiest nations plummeted by 23.1% in 2025, marking the largest annual reduction on record. This sharp decline was reported by the Organisation for Economic Co-operation and Development (OECD) on Thursday.

The Organisation revealed that the reduction was largely driven by the United States, which accounted for three-quarters of the decline. Due to these cuts, Germany has emerged as the largest donor for the first time. Carsten Staur, the chair of the OECD's Development Assistance Committee, described the situation as 'extremely sombre' during a news briefing.

Other major donors, including Germany, France, Britain, and Japan, also significantly cut their aid contributions. The OECD highlighted that this decrease poses a challenge for poorer countries, already burdened by expensive debt. The organisation encourages stronger tax collection efforts to counterbalance the shrinking aid.