THE INFRASTRUCTURE GAP IN LATIN AMERICA AND THE CARIBBEAN
How did infrastructure investment needs evolve in the region between 2021 and 2026?
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2021 vs 2026
The updated investment needs assessment confirms that infrastructure gaps in Latin America and the Caribbean remain significant. The level of annual investment required to achieve infrastructure goals by 2030 increased from 3.12% of estimated GDP in 2021 to 3.53% in 2026.
In absolute terms, the estimated investment needs for 2026 are reduced compared to those projected in 2021 in all sectors analyzed, except water and sanitation.
373,889
2021
406,680
2026
NEW INVESTMENT
ASSET MAINTENANCE AND REPLACEMENT
577,084
2021
382,454
2026
NEW INVESTMENT
ASSET MAINTENANCE AND REPLACEMENT
976,089
2021
633,323
2026
NEW INVESTMENT
ASSET MAINTENANCE AND REPLACEMENT
293,678
2021
173,508
2026
NEW INVESTMENT
ASSET MAINTENANCE AND REPLACEMENT
However, when analyzing investment requirements as a percentage of GDP, needs remain relatively constant or even increase compared to previous estimates, reflecting that the investment effort required to achieve infrastructure goals by 2030 continues to be high throughout the region.
0.52%
2021
NEW INVESTMENT
ASSET MAINTENANCE AND REPLACEMENT
0.93%
2026
0.82%
2021
0.86%
2026
NEW INVESTMENT
ASSET MAINTENANCE AND REPLACEMENT
1.37%
2021
NEW INVESTMENT
ASSET MAINTENANCE AND REPLACEMENT
1.34%
2026
0.41%
2021
0.40%
2026
NEW INVESTMENT
ASSET MAINTENANCE AND REPLACEMENT
INFRASTRUCTURE INVESTMENT IN LATIN AMERICA AND THE CARIBBEAN
Between 2015 and 2023, infrastructure investment levels in Latin America and the Caribbean remained significantly below the estimated requirements to achieve infrastructure goals by 2030. While updated estimates indicate that the region should invest the equivalent of 3.53% of annual GDP, total infrastructure investment averaged 1.67% of GDP during the period analyzed.
Furthermore, infrastructure investment has shown a downward trend in recent years, mainly due to the decline in public investment. In this context, the private sector is consolidating its position as a strategic player in mobilizing financing and supporting the development of sustainable, long-term infrastructure.
The levels of public and private investment observed in the region were significantly lower than the estimated requirements to close the infrastructure gaps by 2030. However, the updated investment needs did not increase to the expected extent. This divergence can be explained by a combination of exogenous factors and limitations associated with measuring infrastructure investment.
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Population projections decline
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Changes in macroeconomic assumptions.
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Update of sectoral data and costs.
EXOGENOUS FACTORS
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Underreporting of public investment.
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Difficulties in identifying infrastructure maintenance and replacement costs.
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Limitations in measuring private investment.
INVESTMENT MEASUREMENT
WHEN WILL WE CLOSE THE GAP?
This calculator allows you to simulate different infrastructure investment scenarios for Latin America and the Caribbean. Based on the percentage of GDP you wish to invest annually, the tool estimates what proportion of the infrastructure gap could be closed by 2030 and in which year the established goals would be achieved.
2021
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2026
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