GNV News, 19 September 2026

According to a report released by the International Fund for Agricultural Development (IFAD) on September 14, 2026, family remittances (*) to low- and middle-income countries reached US$728.6 billion in 2025, almost double the amount in 2016. The volume of these remittances has become larger than not only Official Development Assistance but, in recent years, even Foreign Direct Investment, as shown by this comparison. Worldwide, 220 million migrants support 1.1 billion family members, meaning that one in six people is connected through remittances. The report also shows that even under crises such as the COVID-19 pandemic, armed conflicts, natural disasters, and economic recessions, remittance flows did not decline and have continued to serve as a stable source of household income.

On the receiving side, just the top five countries (India, Mexico, the Philippines, Egypt, and Pakistan) account for about 47% of all recorded remittance inflows to the countries covered in the report. Over the past 10 years, the increase has been greatest in Latin America and the Caribbean, where remittances have risen by 132%.

At the same time, the benefits are not being distributed evenly. A little over 30% of remittances flow into rural areas, underpinning agricultural production and local economies, yet rural recipient households are the most excluded from financial services. While digital remittances are spreading globally, in many cases the remittance may be initiated via smartphone, but the recipient can only withdraw in cash, and the poorer the communications infrastructure and access to bank accounts in rural areas, the further people are left from these benefits. It is noted that in 2025, only 35% of remittances were fully digital on both the sending and receiving ends.

There are also disparities in fees. The global average remains stuck at 6.36%, still more than double the UN target of less than 3%, and the burden is particularly heavy in regions with low transaction volumes and limited competition, such as Southern Africa, Pacific island states, and the Caucasus. In Tajikistan, remittances account for nearly 60% of GDP, and in Tonga for nearly 40%, illustrating how many small economies are heavily dependent on remittances and therefore highly vulnerable to changes in employment conditions in sending countries and to exchange-rate fluctuations.

For private-sector providers, there is a need to fully disclose not only nominal fees but also total costs including foreign-exchange margins, so as to create an environment in which services can compete based on the actual amount received. They are also expected to ensure financial access in rural areas through services that combine digital tools and cash. Governments and international organizations are urged to improve communications infrastructure and cash-withdrawal networks in rural areas, and to integrate remittance policies into broader development strategies such as financial inclusion, rural development, and climate-change adaptation. 

* Family remittances refer to the portion of migrants’ income that is sent to relatives and other people in their country of origin.

Learn more about the remittances that sustain Tajikistan’s economy → “Remittances Supporting the Tajikistan Economy”