Conversely, personal remittances received by IDA countries increased from about $40 billion in 2005 to $189 billion in 2024. Unlike FDI, remittances flow directly to households, supporting consumption, reducing poverty, and providing a steady income for developing economies’ foreign exchange reserves. Though IDA countries have seen strong growth in remittance inflows, major developing countries such as India, Mexico, the Philippines, and China each receive more than the world’s poorest countries combined. India’s remittance inflows alone grew from $22 billion in 2005 to $138 billion in 2024. Mexico’s rose from a similar starting point to $68 billion over the same period.
The countries from which most remittances originate have long absorbed migrant labor, including the US, the United Arab Emirates, Saudi Arabia, Switzerland, Germany, and France. The US remained the largest single source of remittance outflows in 2024, at $103 billion. The UAE, with data now available for 2023 and 2024, recorded $54 and $58 billion for those years, respectively, ranking second globally. Notably, nations that are large remittance recipients are also becoming senders: India’s remittance outflows grew from $1.3 billion in 2005 to $12 billion in 2024, comparable to the UK’s $12.3 billion.
Taken together, the latest WDI data highlight a shift in cross-border financial flows. While foreign direct investment has become more subdued and concentrated, remittances have continued to grow, becoming an increasingly important source of external finance for many low- and middle-income economies. By presenting these trends within a comparable framework, WDI helps users examine how changing patterns of cross-border financial flows are shaping development opportunities worldwide.
