Migrant workers across the world have sent an unprecedented $685 billion in remittances to their families in low- and middle-income countries in 2024, according to the United Nations’ International Fund for Agricultural Development (IFAD). The announcement came during the celebration of the 10th anniversary of the International Day of Family Remittances, which highlights the critical impact of these funds on global poverty alleviation and rural development.
In a statement marking the occasion, IFAD President Alvaro Lario acknowledged the role of 200 million migrant workers who send money home to support an estimated 800 million family members. He emphasized that these remittance flows now surpass both official development assistance and foreign direct investment in many of the countries receiving them. “They fund food, health, education, and entrepreneurs,” Lario said, showing how remittances directly support the well-being of families and the economies of developing nations.
These remittances are especially crucial in regions like Nepal, where families such as Bibha’s depend entirely on the monthly income sent by relatives working abroad—in her case, her husband in Qatar. In many of the 77 developing countries that rely on this income, remittances are not just helpful but vital. In 30 of these countries, remittance flows account for more than 10% of their gross domestic product, effectively serving as the primary source of external capital.
Rural communities benefit significantly from these financial lifelines. Nearly one-third of global remittances go to rural areas, where poverty is often concentrated. IFAD has found that families receiving as little as $300 per month are more likely to invest in small businesses, housing improvements, or climate-resilient agricultural practices. These investments not only improve their current living conditions but also help build more sustainable futures for generations to come.
Digitalization has emerged as a major tool for improving remittance efficiency. By digitizing the transfer process, costs can be lowered significantly, helping migrant workers save up to $20 billion annually. This effort is central to achieving the Sustainable Development Goal of reducing remittance transfer costs to less than 3% by 2030.
As the world prepares for the Fourth International Conference on Financing for Development (FfD4), IFAD is calling on governments, financial institutions, and global organizations to fully harness the transformative power of remittances. The agency urges the creation of enabling policies, better financial tools, and strong partnerships that recognize and protect the contributions of migrant workers.
The International Fund for Agricultural Development (IFAD), a specialized agency of the United Nations, remains committed to ending poverty and hunger in rural areas of developing countries. With the global value of remittances now outpacing major international financial flows, IFAD says it’s time to ensure these funds are given the attention, protection, and policy support they deserve.