Remittances Reach $728.6 Billion; Connecting One in Six People Worldwide

More than half of remittances are estimated to start through a digital channel, a shift that has helped reduce transfer costs, but cash remains common across many remittance routes.

Money sent home by migrants is helping families cover everyday expenses, keep rural businesses running and prepare for unexpected setbacks, with remittance inflows to low- and middle-income countries reaching US$728.6 billion in 2025.

A new report from the International Fund for Agricultural Development (IFAD), Sending Money Home 2026. Beyond remittances: From lifeline to resilience – one family at a time, puts that total at more than four times global official development assistance and above foreign direct investment flowing into those countries.

A Family Lifeline Reaching One in Six People

Behind these financial flows are an estimated 220 million migrants and diaspora members supporting 1.1 billion relatives, connecting roughly one in six people worldwide through money sent across borders. Remittances have grown by 94 per cent since 2016, outpacing population growth and emigration from low- and middle-income countries, and have remained among the largest and most consistent sources of household finance over the past decade, including during crises.

For receiving households, these transfers provide resources to meet basic needs and make decisions about their future, giving families room to save, invest and respond to financial pressure. IFAD President Alvaro Lario said the greatest benefits emerge when people have affordable, trusted financial services, the knowledge to use them and the freedom to choose options that reflect their own needs and aspirations.

Rural Communities Receive $233 Billion in Support

Almost one in every three dollars sent home by migrants reached rural areas, bringing an estimated US$233 billion into places where formal jobs, financial services and public infrastructure are often limited. Families receiving remittances invest around US$22 billion each year in rural agrifood systems, supporting agricultural production, rural enterprises and employment, with benefits reaching businesses and workers beyond the households that receive the money.

Access to savings accounts, insurance and suitable credit can help families turn this regular support into greater protection against economic disruption and climate-related shocks. Lario described remittances as a possible first step towards these services, with stronger local opportunities helping create conditions in which people can choose whether to migrate instead of feeling compelled to leave through lack of alternatives.

Cheaper Transfers Can Help Families Make Money Go Further

More than half of remittances are estimated to start through a digital channel, a shift that has helped reduce transfer costs, but cash remains common across many remittance routes. Only 35 per cent of the services measured in 2025 were fully digital at both the sending and receiving ends, showing that digital access at one stage does not necessarily carry through to the person collecting the money.

The report calls on governments, regulators, financial institutions and development partners to make transfers more affordable and transparent, improve rural services and strengthen people's financial and digital skills. Wider access to savings, insurance, appropriate credit and investment opportunities could give households more ways to use their money according to their priorities, with policies recognising that remittances are private family resources and cannot replace public investment, social protection or climate finance.