MercoPress. South Atlantic News Agency

Latinamerica forecasted to expand 5% this year

Latinamerica and the Caribbean region economies are forecasted to expand 5% in 2006, up from the original 4.6%, supported on a better than expected performance from Brazil and Mexico.

The United Nations Economic Commission for Latinamerica and the Caribbean, Cepal, said Tuesday in Santiago in an official release that an enhanced performance of the global economy plus abundant liquidity are helping the region.

Last year Latinamerica and Caribbean economies experienced a 4.5% growth, and this year prospects are promising much more.

"Growth in the region is supported by a sustained expansion of the world economy and abundant liquidity in international markets", states the Cepal release.

"Taking into account the improved situation in the region regarding external and fiscal vulnerabilities, abrupt changes regarding current growth development, should not be expected in the near future".

Cepal estimates growth in the region to be in the range of 4.5% in 2007.

Brazil and Mexico's estimates were risen from 3,5 to 4% for this year. Argentina is forecasted to expand 7.6% (up from 7.5%), but Chile is forecasted to ease from 5.7 to 5.6%, concludes the report.