Rich nations' overseas development aid drops by 23% in 2025, says OECD

By Duncan Miriri

NAIROBI, April 9 (Reuters) - Overseas development aid from the world's richest nations to poorer countries dropped by 23.1% year-on-year in 2025 to $174.3 billion, the biggest ever annual reduction, the Organisation for Economic Co-operation and Development said on Thursday.

The OECD's Development Assistance Committee, which includes the United States, Japan and the European Union, reported a drop in provision of assistance by 26 out of its 34 member countries, mainly due to political and fiscal pressures in their own economies.

The U.S. alone drove three-quarters of the decline, the OECD said in its report, with its overseas development assistance falling by the largest reduction by any provider in any year on record.

"The scale of the decline by the United States meant that Germany became the largest provider of overseas development assistance for the first time," it said.

Germany, France, Britain and Japan, which normally make up the top-5 donors, had also cut their assistance significantly during the year, the OECD added.

The provisional data measures overseas development assistance (ODA) - government aid given to poorer countries to support their economic development and welfare.