Historic decline in international aid 

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Even before the major cuts to US aid in 2025, we could see a clear trend of several Western countries cutting their aid budgets. Cuts are also taking place in Norway. Last year, Norway provided NOK 55.7 billion in aid. That was NOK 2.9 billion less than the previous year, corresponding to a decline of five per cent. The decline is especially evident within emergency relief and food security.   

Norway has, however, maintained a high level of aid compared to the other OECD Development Assistance Committee (DAC) member states and was the largest donor measured by gross national income – at 1.02 per cent.   

“In many ways, Norway could be considered the ‘last country standing’. It is now crucial for the world that Norway not only maintains a high level of aid but also increases international investments for sustainable development,” says Bård Vegar Solhjell, Director General of Norad.   

“In troubled times of great economic instability and more humanitarian crisis than in a long time, it is extremely concerning to see an international trend in which a number of Western countries are cutting their aid budgets. We must base our actions on needs, and therefore international aid should increase, not decrease,” Solhjell says.   

In total, there was a decline of 7.1 per cent in international aid in 2024, according to the latest aid statistics. Germany, the USA, the UK and Japan are the countries that have made the greatest cuts, measured in US dollars. Together, these countries account for more than 60 per cent of aid from DAC member states.   

Several major donor countries have also announced significant cuts to aid in 2025. The extensive cuts in the US aid budget have attracted the most attention, but significant reductions have also been announced by several major European donor countries, including Germany and France. 

According to projections developed by Norad in connection with the publication of the official aid statistics, the level of international aid is expected to decrease by between 12 and 25 per cent in 2025. The greatest uncertainty relates to the extent of the US cuts.  

“Norway must now assume international leadership. At a time when many countries are focusing their attention and budgets on domestic issues, it is more important than ever that we continue to be a predictable donor and partner country that others can trust. Norway has a lot to gain from maintaining this position. Several large countries are looking to us now and I believe it would be extremely unwise to squander this position by reducing aid,” says Solhjell.   

Europe gets the most  

For the first time, Europe has become the largest recipient region for Norwegian aid, receiving NOK 10.1 billion in earmarked aid from Norway in 2024.  In comparison, Africa received NOK 8.4 billion in earmarked aid from Norway last year. The increase in aid to Europe can primarily be attributed to increased aid to Ukraine.  

Ukraine was by far the largest recipient of Norwegian aid in 2024, with NOK 9.3 billion in earmarked aid, followed by Palestine, Indonesia and Brazil. Performance-based payments for reduced greenhouse gas emissions and reduced deforestation are the reasons why Indonesia and Brazil have rank so high on the list of recipient countries. 

Sharp decline in aid to poorest countries  

The 2024 statistics show a significant decline in Norwegian aid to the poorest countries, with a reduction of NOK 2.3 billion compared to the previous year. In Norwegian kroner, this corresponds to the same level as in 2020 but as a proportion of the country-allocated aid, it constitutes a significant reduction, from 56% in 2020 to 31% in 2024.  

While aid to the poorest countries was at approximately the same level in 2020 and 2024, aid to middle-income countries has increased by more than NOK 10 billion since 2020.   

Adjusted for inflation, the least developed countries received the second lowest amount in a decade in 2024.   

“Even though Norway maintained a high level of aid last year, this is not reflected in aid to the poorest countries. We need to ensure that we use aid even more effectively and that the aid percentage is used where the needs are greatest,” Solhjell explains.    

“There is a need for both Norway and other countries to invest much more in global common goods such as the climate and pandemic preparedness and to ensure that the official aid budgets are used to eradicate poverty,” Solhjell says.