Latin America and the Caribbean (LAC) has vast reserves of natural resources and human talent that can be drawn on for economic diversification, higher productivity, the growth of value-added industries and new employment opportunities.
This 18th edition of the Latin American Economic Outlook highlights that achieving such a transformation requires well-designed productive development strategies that are tailored to the unique circumstances of different communities and sectors. Ambitious reforms can help unlock new sources of financing to drive growth, enable the green and digital transformations and enhance social inclusion.
In implementing these measures, co-ordination across national and subnational institutions is needed, along with the involvement of the private sector, civil society and other relevant stakeholders. Targeted policies should aim to enhance skills development, unlock quality employment, encourage human-centred digital transformation and environmental sustainability, and harness strategic advantages in high-potential sectors such as renewable energy, sustainable agriculture and food systems, digital industries, health and the care economy – in line with the priorities set by LAC countries and their territories.
Financing these strategies remains a structural challenge, particularly in a context of limited fiscal space. Public, private and international actors, including national and multilateral institutions, must work together to mobilise new funding sources, design innovative instruments, channel quality investment, and support priority sectors. Beyond financing, development banks also play a key role in fostering co‑ordination, building capacity and promoting knowledge sharing to enhance the effectiveness of these strategies.
International co-operation and partnerships have an essential role to play. The upcoming IV CELAC–EU Summit will be a key moment to deepen this co-operation under the EU–LAC Global Gateway Investment Agenda. Through Global Gateway, Europe and Latin America are investing together in clean energy, digital connectivity, health, and resilient value chains, linking infrastructure with education, innovation, local enterprise, and new opportunities for our societies.
This new edition of the Latin American Economic Outlook contributes to these shared efforts with analysis and recommendations, and by identifying ways to strengthen global partnerships and scale up productive development policies at the subnational, national and regional levels – decisively, inclusively and sustainably.
Mathias Cormann
Secretary-General OECD
Sergio Diaz-Granados
Executive President,
CAF – Development Bank of Latin America and the Caribbean
José Manuel Salazar-Xirinachs
Executive Secretary
ECLAC
Jozef Sikela
European Commissioner for International Partnerships