UNITED NATIONS (CMC) — The United Nations International Fund for Agricultural Development (IFAD) says migrants sent an estimated US$728.6 billion home to families in low- and middle-income countries, including the Caribbean, last year — nearly double the amount recorded a decade earlier.

It said these transfers, known as remittances, grew by 94 per cent between 2016 and 2025, far outpacing the 28 per cent increase in the number of migrants from those countries.

The gap shows that growth is not simply the result of more people migrating. On average, migrants abroad are sending larger amounts home.

But IFAD also noted that while the total sent home last year was more than four times global official development assistance and also exceeded foreign direct investment to low- and middle-income countries, the growing importance of remittances leaves families and economies vulnerable to changes affecting migrants abroad.

It said this is particularly evident in Latin America and the Caribbean, where the United States remains the dominant source of remittances.

The report warns that deportations, employment restrictions or weaker labour demand can reduce both the number of people sending money and their ability to do so.

“Figures right now do not show actually a reduction in remittances,” said Pedro de Vasconcellos, who manages IFAD’s Financing Facility for Remittances. He told the daily UN briefing that despite tougher migration policies in the United States and Europe, family needs tend to keep flows resilient during crises.

According to the UN, Central America is among the most exposed. Remittances were equivalent to 30 per cent of gross domestic product (GDP) in Honduras in 2025, 28 per cent in El Salvador and 27 per cent in Nicaragua.

A study cited by IFAD also found that 61 per cent of returnees surveyed in Guatemala had been the main income earner in their household, showing how involuntary return can mean a sudden loss of income for relatives left behind.

Latin America and the Caribbean recorded the fastest remittance growth of any region, rising 132 per cent to US$168.6 billion, while Asia and the Pacific remained the largest recipient region overall, receiving US$384.9 billion, or 53 per cent of the global total.

Africa received US$124.2 billion in 2025, an increase of 86 per cent over the decade, with Egypt overtaking Nigeria as the continent’s largest recipient.

IFAD said around three-quarters of remittances go towards immediate needs such as food, shelter and utilities. The remaining quarter — more than US$180 billion each year — is used for healthcare, education, housing, savings and businesses.

Almost US$233 billion, roughly one dollar in every three sent home, reached rural economies in 2025, where access to jobs, financial services and public infrastructure is often weakest. Remittance-receiving households also invest an estimated US$22 billion annually in rural agrifood systems.

The report also highlights their role in helping families cope with climate-related shocks, from replacing lost income to rebuilding after disasters.

De Vasconcellos stressed, however, that these are private family resources and “cannot substitute” for public investment, social protection, humanitarian assistance or climate finance.

The report found that more than half of remittances now begin digitally, but many still end with someone collecting cash. Only 35 per cent of services measured in 2025 were fully digital from sender to recipient.

Digital transfers are cheaper, costing an average of around 4.6 per cent compared with 7.3 per cent for non-digital services.

“Technologies really can help. But it’s not enough,” de Vasconcellos said, stressing that families also need reliable and affordable ways to receive and use the money.

IFAD is calling for cheaper and more transparent transfers, better access to financial services and more opportunities for families to save, insure themselves and invest so they can build greater resilience over time.