Remittances
How the money migrants send home has become one of the largest financial flows to developing countries, exceeding foreign aid and transforming local economies.
The Remittance Revolution
Remittances, money sent by migrants to family members in their home countries, have become one of the largest financial flows to developing countries. In 2022, remittances to low- and middle-income countries reached $656 billion, roughly three times the amount of official development assistance. For many countries, remittances are the single largest source of foreign exchange: they represent over 30 percent of GDP in countries like Tonga, Lebanon, Tajikistan, and The Gambia.
Unlike foreign aid, remittances go directly to families, who spend them on food, education, healthcare, and housing. They are remarkably stable compared to other financial flows, continuing even during economic downturns in destination countries. During COVID-19, remittances initially declined but recovered faster than predicted, demonstrating migrants' commitment to supporting their families even under economic pressure.