A new report from the Inter-American Development Bank (IDB) finds that innovative financing solutions and public-private partnerships (PPPs) are key to unlocking the Caribbean’s development.

Investment in smart, resilient, well-executed infrastructure projects will both help insulate the region from global economic shocks, as well as drive faster and more inclusive growth.

The report, published on Thursday (October 16), provides a comprehensive analysis of the region’s infrastructure investment needs, the enabling environment for public-private partnerships (PPPs), and the reforms that can catalyse new sources and greater volumes of private finance. It also highlights the role of the IDB Group’s regional ONE Caribbean programme, designed to facilitate private investment and expertise for sustainable development.

Caribbean countries have long grappled with fiscal and debt vulnerabilities, which have constrained public investment in critical infrastructure and social services. The report notes that since 1970, Caribbean economies have averaged less than two per cent annual growth in real gross domestic product. 

Using IDB-developed methodologies, the report quantifies infrastructure development gaps across key sectors and estimates that the Caribbean will require more than US$21 billion in infrastructure investment by 2030. 

“Countries across the region need significantly larger volumes of private investment, expertise, and innovation to drive faster and more inclusive growth. This report highlights key sectors—including transport, water and sanitation, energy, and digital telecommunications infrastructure—that are most critical for sustainable growth and best placed to benefit from PPPs, as well as areas where focused reforms are most likely to deliver results,” said Anton Edmunds, IDB general manager for the Caribbean. “The IDB Group and our ONE Caribbean regional programme can provide countries and firms with financial, technical, and project preparation support needed to help catalyse new investments in these and other priority sectors,” added Edmunds.

Surpassing US$21 billion in infrastructure investment by 2030 could generate additional economic growth exceeding US$84 billion across the region. These estimates exclude additional investments needed for social infrastructure such as schools and hospitals, suggesting actual needs may be even greater.

Given limited fiscal space and heightened exposure to natural disasters, the report emphasises the critical role of PPPs in mobilising private capital and delivering high-quality infrastructure. Drawing on global and regional experience, the IDB outlines how PPPs can enhance efficiency, reduce costs, and accelerate innovation.

The report, according to the Washington DC-based multilateral, forms part of its Caribbean Economics Quarterly publication series, which focuses on the economic performance of The Bahamas, Barbados, Guyana, Jamaica, Suriname, and Trinidad and Tobago.