MENDOZA, Argentina – The Inter-American Development Bank and IDB Invest today wrapped up the annual meeting of their Boards of Governors, calling for an ambitious growth agenda for Latin America and the Caribbean focused on boosting infrastructure investments and productivity.

In its 2018 Macroeconomic Report, the IDB said the region’s economic outlook is positive, with a 1.9% growth in GDP expected this year and close to 3% next year. However, it noted, the region still faces risks such as spiking interest rates and is performing below its potential.

One of the causes of subpar growth is that Latin American and Caribbean countries invest far less than more dynamic economies in key sectors such as infrastructure, both in volume and efficiency.

In his opening speech to the Boards of Governors, whose members are finance ministers, central bankers and other high-ranking officials from the IDB and IDB Invest member countries, President Luis Alberto Moreno called for a sustained effort to close the region’s infrastructure gap.

“In the next 20 to 30 years, the region should invest around five percent of its GDP each year, nearly double the current levels,” Moreno said. “Here, it is a question of promoting competitiveness, connectivity, and, in doing so, better living conditions for our citizens.”

In his remarks to the gathering, Argentine President Mauricio Macri commended the IDB for its work in promoting infrastructure as an engine for development. “We know that, without physical and virtual connectivity, we will lack a fundamental tool to succeed in the quest for competitiveness,” he said.

Starting this year, the IDB will undertake a series of studies to advise borrowing member countries on what kind of infrastructure investments would be most effective in boosting productivity in lagging sectors.

Highlights of the meeting in Mendoza

During their sessions, the governors approved the annual reports of the IDB and IDB Invest. Last year the Bank approved 90 sovereign-guaranteed operations totaling $11.4 billion. IDB Invest approved 233 non-sovereign guaranteed operations totaling $3.2 billion for businesses in the region.

The IDB also formalized several operations totaling $1 billion with Argentina, including loans for expanding a corridor connecting the province of Mendoza with Chile and a $500 million program of partial credit and political risk guarantees to promote public-private partnerships in infrastructure projects.

In addition, the IDB launched its latest Sustainability Report , highlighting that the Bank and IDB Invest had approved more than $4.3 billion in operations related to climate change mitigation and adaptation, representing 28% of project approvals by volume for the year.

Prior to the Governors’ meetings, the IDB and IDB Invest hosted a series of events in Mendoza focused on key development topics for Latin America and the Caribbean.

More than 80 mayors from the region and Spain took part in a day-long forum centered on cooperation between local governments in large metropolitan areas.

Demand Solutions, an event that ties innovation to development, held debates on urban mobility, resilience to climate change, the future of work and creative cities before an audience of more than 1900 people.

The IDB, in Alliance with the Province of Mendoza, UNICIPIO and the Municipality of Guaymallén, announced that the Universidad Central de Venezuela won the BID UrbanLab contest. The university students will implement an integrated, multisector, innovative and sustainable urban project in the Guaymallén Department, in the Province of Mendoza, in honor of the renowned caricaturist and creator of the Mafalda cartoon strip, Joaquín Lavado, also known as QUINO.

The Business Forum of the Americas brought together more than 900 public and private sector leaders to discuss concrete proposals to solve development problems, which will be presented to the heads of state and government at the Summit of the Americas scheduled to take place in Lima, Peru next month.

The next annual meeting of the Boards of Governors of the IDB and IDB Invest will be held in March 2019 in Chengdu, China.

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The Inter-American Development Bank is devoted to improving lives. Established in 1959, the IDB is a leading source of long-term financing for economic, social and institutional development in Latin America and the Caribbean. The IDB also conducts cutting-edge research and provides policy advice, technical assistance and training to public and private sector clients throughout the region.