MercoPress. South Atlantic News Agency

EU predicts gradual Latinamerican recovery.

The European Commission predicts a gradual recovery of Latinamerican economies in the next two years, particularly Argentina, but warns about slower growth in Venezuela and Uruguay.

In the annual report published this week the European Commission anticipates that "after the stagnation of 2002, Latinamerica will recover gradually, benefiting from depreciated currencies, improvement of the world economy and the gradual solution to the financial crisis that hit several countries of the region".

Regarding 2003, EC states that even when overall regional growth is being contained by the Uruguayan and Venezuelan crisis, it's expected to accelerate in 2004.

In Argentina the economy is expected to expand rapidly following the great financial crisis of 2002, while in Brazil overseas demand for exports remains strong, "although domestic demand is still contained".

Mexico, the largest economy in the region, follows on the steps of United States and therefore a "steady recovery of its economy is forecasted".

However, because Brazil and Mexico suffered an unexpected weakening of growth in 2003, this has limited expectations for 2004 and "there's a possibility of a downward growth review".

Overall Brussels anticipates 2% growth in Latinamerica this year, jumping to 3,4% in 2004 and 4,4% in 2005.