The Caribbean has unique potential for sustainable development, including in renewable energy, the blue economy, and sustainable tourism and transport. But seizing these opportunities requires bold policy reforms. Caribbean Development Dynamics (CDD), a new annual flagship report co-published by the OECD Development Centre and the Inter-American Development Bank, provides policy recommendations at local, regional and international levels. The 2026 edition highlights initiatives across the Caribbean to diversify economies, improve climate resilience, and create formal jobs. It underscores the need for greater regional cooperation to address challenges around transport, digital access, and disaster-risk mitigation. The report also shows how stronger partnerships can amplify the Caribbean's voice on the global stage. The CDD reflects the OECD’s growing engagement with the Caribbean.
Caribbean development strategies
As well as shared geography, Caribbean countries have common characteristics in terms of economic assets and structures, social challenges, institutional frameworks, and environmental risks or opportunities. The OECD provides Caribbean policy makers with evidence-based, regional and national analysis, to help them monitor economic trends, learn from each other and craft innovative solutions to the challenges of sustainable development.
Key messages
Government revenue is the primary source of development finance for any country, and an essential component of the social contract. In the Caribbean, many economies are facing the challenges of increasing revenue while streamlining tax incentives and improving transparency. The OECD works with financial and tax administrations in the Caribbean to create databases of trusted, comparable data, improve collection and combat avoidance.
Context
Investment is rising but remains misaligned with long-term resilience needs
Total investment in the Caribbean averaged 28% of regional GDP in 2023, above OECD and Latin American averages. However, investment is often driven by short-term or externally financed projects, including post-disaster reconstruction, rather than long-term development priorities.
Underdeveloped domestic capital markets and high financing costs constrain long-term finance needed to close infrastructure gaps. FDI — which represented 4.2% of GDP in 2024 (6.3% including Guyana) — can help bridge investment gaps, support strategic areas like digital transformation, renewable energy, and export diversification, and foster quality job creation.
Latin American Economic Outlook
Related policy issues
-
Africa’s economic and social transformation is a global priority. The OECD supports the implementation of the African Union’s strategic vision at continental, regional, national and local levels by co-producing cutting-edge data and analysis with African member states and partners, and facilitating an open policy dialogue.Learn more
-
Emerging Asia is the world’s most dynamic economic region. The OECD supports the efforts of countries in the region to better manage risks, share the benefits of growth, improve well-being and achieve their development goals, by fostering international and regional dialogue based on comparative data and analysis, structural policy performance indicators and medium-term economic projections.Learn more
-
Latin American economies need new growth models to reach high-income status, increase productivity and strengthen their emerging middle classes. To help identify innovative policy options, the OECD stimulates an open dialogue between the region’s policy makers, their international partners, and investors. It also supports reform efforts with country-specific and thematic work.Learn more