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Finance

Growing remittances dwarf global aid

People are sending money home more than global aid

The flow of remittances, or money sent home by expats, is booming. In 2013 remittances dwarfed official aid by a factor of three. Last year totals grew 5%, to a record $435 billion; the World Bank says they could exceed $500 billion by 2017. Whether or not that happens, their impact will be huge. In 2012 the U.S. gave $209 million to Mexico in official aid but sent $22 billion in remittances—nearly 2% of the country’s GDP.

This story is from the March 15, 2015 issue of Fortune.