Following years of aid growth driven by events like the war in Ukraine and COVID-19, 2025 saw the largest contraction on record. #EuropeInMo
...record. The world's richest nations are withdrawing aid funds for poorer countries at a rate never seen before, according to a new study. In 2025, the second consecutive year of decline, official development assistance (ODA) by member states dropped by 23.1% from 2024 to just over €149 billion, the OECD has reported. Leading the retreat, the US led by President Donald Trump slashed its aid budget by an unprecedented 57%, accounting for the lion's share of the global shortfall. Together with cuts from other major donors, namely France (-10.9%), Germany (-17.4%), Japan (-5.6%) and the UK (-10.8%), they account for 96% of the total drop in funding, such as grants, loans or technical and logistical support. The OECD forecast a further 5.8% contraction in 2026. Who is the new largest international aid donor? Following Washington's funding drop, in 2025, Germany became the world's largest ODA funder, with €24.89 billion. The US is now second with €24.77 billion, followed by EU institutions (€22.29 billion) and the UK (€14.70 billion). However, looking at ODA as a percentage of each country's gross national income (GNI), Norway tops the list with 1.03%, followed by Luxembourg, Sweden and Denmark.
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