A New Strategy for the Latin American Economy
The Latin American and Caribbean (LAC) region stands at a critical juncture. According to the newly released Latin American Economic Outlook 2026, the region possesses a unique combination of strategic assets—ranging from renewable energy and critical minerals to emerging prowess in artificial intelligence—that could redefine its role in the global economy.
While the potential for high-value growth is significant, the report emphasizes that the region remains insufficiently integrated into global value chains. To move beyond historical stagnation, the OECD suggests that Latin American nations must tackle systemic obstacles, including infrastructure gaps, regulatory fragmentation, and critical skills shortages.
Key Pillars for Future Growth
The path to prosperity, as outlined by the OECD, is not a single-track solution but a multifaceted approach focusing on four primary pillars:
- Renewable Energy: Leveraging the region's natural advantages to attract quality green investment.
- Critical Minerals: Moving up the value chain to capture more economic activity locally.
- Artificial Intelligence: Investing in digital infrastructure and skills to foster regional innovation.
- Agrifood Systems: Strengthening food security through sustainable practices and modernized logistics.
For these initiatives to succeed, the report argues for stronger regional cooperation. By harmonizing regulatory frameworks and connecting infrastructure networks, countries across the LAC region can amplify their collective bargaining power and streamline access to international markets.
Overcoming Systemic Barriers
Despite its strengths, the region faces persistent headwinds. The report explicitly identifies limited financing and a lack of skilled human capital as major bottlenecks that constrain productivity. Without addressing these foundational issues, the promise of new technology and green investments may go unrealized.
By strengthening infrastructure, finance, skills and regulatory frameworks, and by leveraging international partnerships for investment, technology and market access, LAC can translate its strategic assets into higher productivity, innovation, quality jobs, and more inclusive and sustainable growth.
— OECD Latin American Economic Outlook 2026