By: Staff Writer
August 14, 2026
The Inter-American Development Bank in their latest Group Impact Report said that the Latin American and Caribbean (LAC) region has strong growth potential in sectors like agriculture, manufacturing and tourism.
The report said: “Together, agriculture and manufacturing account for around 27 percent of employment and 19 percent of GDP and tourism could add 2.1 million jobs by 2034.
“Agriculture accounts for almost a quarter of LAC exports and LAC is the worldʼs largest net exporter of agrifood products, making it central to global food supply, while manufactured goods represent 63 percent of merchandise exports.
“Shifting global supply chains and technological innovation can revitalize the industrial base, while the regionʼs natural and cultural assets position it to capture growing tourism demand. However, major constraints persist.
“Agricultural productivity growth slowed to 0.9 percent annually from 2010-2020. Manufacturing remains concentrated in lowtech industries, with its share of regional GDP steadily declining over the last 25 years and large productivity gaps across firms, and tourism faces low competitiveness, vulnerability to shocks, and investment barriers.”
The IDB Group remains on track to meet its 49 Performance Targets. A majority of completed projects achieved satisfactory development results. In 2024 and 2025, IDB Group-supported operations helped 36 million people access quality health and nutrition services and 12 million people gain new or improved access to safely managed drinking water and sanitation.
The Group also supported 1.2 million farmers through enhanced agricultural services and investments, reached 1.9 million people through early childhood programs, education and skills-development programs, and expanded broadband access to 11 million people across the region.
“These results are a testament to the IDB Group’s deepening impact across Latin America and the Caribbean. By delivering measurable development outcomes, we are helping the region become more productive, resilient, and prosperous,” said IDB Group President Ilan Goldfajn.
These results underscore the IDB Group’s growing role not only as a provider of financing, but also of knowledge and partnerships to address the region’s critical development challenges at greater scale. This year’s report also highlights the Group’s long-standing contributions to productive development and innovation through the private sector.
Over the past two years, the Group has implemented a series of institutional reforms that have strengthened its financial capacity, positioning it to support up to $500 billion in financing and investment over the next decade. At the same time, it has enhanced portfolio supervision and results management to ensure projects deliver lasting development outcomes.
The report shows the achievement rate of development results at project completion continues to improve for both the IDB and IDB Invest, with IDB Invest exceeding its target for this indicator. The report also highlights progress in implementing the IDB Group’s Institutional Strategy.
The organization remains on track to meet most of its performance targets, including for projects supporting sustainable economic growth, projects with satisfactory mitigation of environmental and social risks, and projects supporting institutional capacity and rule of law.