MercoPress. South Atlantic News Agency

LA forecast growth slashed.

The United Nations Latinamerican Economic Committee, Cepal, further cut its growth estimate for the region from the 2/2,5% of last November to 1,5/2% because of the international situation created by the Iraq conflict and increasing problems for the Venezuela economy.

Cepal's forecast indicates that the so long expected strong Latinamerican recovery will have to wait after the 0,6% contraction of 2002.

"We're closer to between 1,5% and 2% growth which means that this will not be the year of a strong recovery and that is understandable because of uncertainties in the world scenario", said Cepal chairman José Antonio Ocampo.

Another factor that has contributed to downgrade expectations is the situation in Venezuela that suffered a three months national strike at the beginning of the year that virtually paralyzed oil production, the country's main source of revenue.

"Although things are back to normal, and so is oil production, the overall picture for the year will be negative", said Mr. Ocampo.

On the other hand Argentina, until this year the sick man of the region will be expanding much faster than originally expected.

"The Argentine government is confident that is can reach 4% growth and we believe they are right", said Mr. Ocampo.