MercoPress. South Atlantic News Agency

Dismal forecast

Latinamerica is expected to end 2002 with a dismal growth of 0,2%, a depressing global outlook for some of the leading economies of the region, according to the latest report from CEPAL, United Nations Economic Commission for Latinamerica.

The worst performances will be in Argentina, whose GDP is estimated to drop 10%; Uruguay that from an original zero growth is likely to shrink 2% and Venezuela that will remain stagnant with no growth at all.

In Argentina and Venezuela deteriorating political situations have plunged both countries into economic turmoil. Argentina in six months has had five presidents and six Economy Ministers, and is still unable to agree with the IMF a desperately needed financial aid package.

In Venezuela President Hugo Chaves suffered a two days coup and massive street protests that have left the country split in halves.

Uruguay on the other hand is suffering the direct consequences of the Argentine political, financial and banking instability.

Mexico the leading economy in the region, and ever closely linked to the US, is expected to manage a dismal 1% growth while Brazil, the second largest, is anticipated could expand 2,2%.

In the two brighter spots of the area Chile and Peru, earlier projections of 3,2% and 3,5% have been downgraded to 3%, anyhow still encouraging.

Ecuador is the only country that is expected to post a higher that anticipated growth, 2,7% against an original 2,5%.