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Info Service on Finance and Development (Apr26/02) Penang, 10 Apr (Kanaga Raja) — International aid from member countries and associates of the Development Assistance Committee (DAC) fell sharply in 2025 by 23.1% in real terms compared to 2024, the steepest annual decline in the history of official development assistance (ODA), according to preliminary data released by the Organization for Economic Cooperation and Development (OECD). This contraction pushes ODA back to levels last seen in 2015, the year the 2030 Agenda for Sustainable Development was adopted, marking a major setback after years of commitments to scale up financing for sustainable development, according to the Paris-based OECD. ODA by DAC member and associate countries amounted to USD 174.3 billion in 2025, representing 0.26% of these countries’ combined gross national income (GNI), down from USD 214.6 billion or 0.34% of GNI in 2024, it said. In its preliminary ODA statistics posted on its website on 9 April, the OECD said the five largest providers of ODA in 2025 were Germany (USD 29.1 billion), which has become the largest provider of ODA for the first time, followed by the United States (USD 29.0 billion), the United Kingdom (USD 17.2 billion), Japan (USD 16.2 billion), and France (USD 14.5 billion). This was the first year on record in which the top five providers all reduced their ODA, accounting for 95.7% of the total decline in ODA overall, with ODA provided by the United States declining by 56.9%, it added. Eight out of the 34 DAC members maintained or increased their ODA, while four countries exceeded the United Nations’ target of 0.7% ODA to GNI: Denmark (0.72%), Luxembourg (0.99%), Norway (1.03%) and Sweden (0.85%). Bilateral ODA fell by 26.4% to USD 126.4 billion, while multilateral ODA declined by 12.7% to USD 47.9 billion, said the OECD, pointing out that within the bilateral ODA, grants recorded a much sharper decrease (-29.1%) than loans (-10.3%). For multilateral ODA, which fell for the second year in a row, declines were concentrated in core contributions to the UN system at -27%, the largest annual drop on record. In contrast, contributions to the World Bank and regional development banks increased, it added. The Paris-based OECD reported that bilateral aid to development programming faced a historic decline. ODA to development programmes, projects and technical co-operation (excluding in-donor refugee costs, humanitarian aid and debt relief) declined by 26.3%, the largest drop on record for this component. “These flows have been resilient over time, increasing by 24.2% from 2019 to 2023. The significant decline in 2025 suggests that cuts have extended beyond components of aid that typically fluctuate from year to year, such as in-donor refugee costs and humanitarian aid.” Humanitarian ODA from DAC countries fell 35.8% to USD 15.5 billion, the second consecutive fall after five years of growth (2019-2023), the OECD reported. ODA for in-donor refugee costs decreased by 22.1% over 2024 and remained stable as a share of total ODA (13.2% compared to 13.0% in 2024). The OECD also recorded declines in bilateral ODA for Ukraine, sub-Saharan Africa and the least developed countries (LDCs). DAC countries’ net bilateral ODA to Ukraine fell by 38.2% in 2025 to reach USD 10.3 billion, driven by the decline in US support, despite 23 countries increasing their bilateral ODA to Ukraine. Bilateral ODA to least developed countries (LDCs) and sub-Saharan Africa also fell by 25.8% and 26.3%, respectively, it said. Going forward, the OECD projected further cuts to ODA, which rose 32.7% from 2019 to 2023, driven by DAC members’ response to the COVID-19 pandemic and to Russia’s war of aggression against Ukraine. That growth has since reversed. ODA fell by 6.1% in 2024 and 23.1% in 2025 amid mounting political and fiscal pressures, bringing it to 4.2% below 2019 levels, it said. Projections suggest a further 5.8% drop in DAC ODA in 2026, not yet accounting for additional strain from the current crisis in the Middle East, it concluded. +
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