Aid to the Global South fell by 23.1% in real terms in 2025, according to new OECD Development Assistance Committee (DAC) data released today.

Total aid from wealthy countries amounted to US$ 174.3 billion, or just 0.26% of gross national income (GNI) - which falls far short of the 0.7% first agreed more than 50 years ago. Just 16.1% or US$ 28.1 billion reached the world’s Least Developed Countries (LDC), many already facing unsustainable debt burdens. By contrast, Ukraine alone received US$ 44.9 billion or nearly 26% of total ODA.

The United States cut its aid budget by a staggering 56.9%. But EU countries also made some of the most significant cuts to aid budgets, with reductions averaging almost 10% across the bloc. Some of the largest decreases were recorded by Belgium, France, Germany, Portugal and Poland. Meanwhile, the UK cut its aid by 10.8%. The EU institutions also saw a massive decrease of nearly 14%, despite allocating an unprecedented US$ 36.4 billion to Ukraine.

This marks a second consecutive year of record cuts, deepening a crisis that will drive instability and global repercussions. The drop comes as military spending continues to rise sharply and conflicts devastate lives and the global economy. 

While just four countries (Denmark, Luxembourg, Norway and Sweden) met their long-standing aid commitment in 2025, all NATO member states met, or exceeded, the standing 2% of GNI target for military spending. They have also agreed to increase this to 5% - underscoring a stark shift in political priorities away from global solidarity.

The impact of cuts to development assistance is already being felt across the world’s poorest countries, cutting access to healthcare, education and food for millions.

Matthew Simonds, Senior Policy and Advocacy Officer for the European Network on Debt and Development (Eurodad) said: “This data confirms a stark reality: rich countries are writing a blank cheque for war while abandoning the world’s most vulnerable. Prioritising an economy of war over an economy of care makes the world less secure for everyone.

“In Europe, historic aid cuts send a damaging signal about shifting political priorities - eroding its credibility as a development leader.”

In-donor refugee costs - the cost of hosting refugees in wealthy countries - also remain historically high at US$ 23 billion, or 13% of total ODA. Aid delivered as grants plunged by a startling 29.1%.  Meanwhile, aid delivered through private sector instruments like credit guarantees and equity finance increased by 13%.

Simonds said: “In times of massive aid cuts, this further confirms that scarce aid resources are not being delivered in the interests of the Global South.”

Civil society organisations are calling on global leaders to urgently reverse course and:

• Prioritise aid commitments like 0.7% of GNI to ODA and 0.15-0.2% to least developed countries
• Prioritise aid going to the poorest countries, rather than domestic, commercial or geopolitical interests
• Implement development effectiveness principles - increase transparency, accountability, predictability, and Global South country ownership of development finance
• Move decision-making on international development cooperation to the United Nations, ending closed-door control by wealthy countries and ensuring all countries have a voice.
• Cancel unsustainable debt, so countries can invest in public services

Simonds said: “A more stable and prosperous world benefits everyone. That is what an economy of care, backed by well-targeted development assistance, delivers. It produces real results: more children surviving, families accessing healthcare, communities thriving.

"We must recognise the proven impact of well-targeted development cooperation and build a future grounded in justice and global solidarity. There are ongoing discussions which provide a critical opportunity to turn these commitments into action."

ENDS

Media contact: Julia Ravenscroft, Communications Manager, Eurodad: [email protected]/ +44 7958184695

Notes to editors

• The OECD-DAC preliminary data for 2025 was published here today 
• Here you can read Eurodad’s latest report on developments in ODA in the past decade: