The economy of Latin America as a whole is to grow by 4.9 per cent in 2008, which would complete its sixth consecutive year of economic expansion and will have pulled some 30 million people out of poverty, the Economic Commission for Latin America and the Caribbean (ECLAC) said Thursday according to DPA. Panama is expected to lead the pack with a rate of growth of 8.5 per cent, ahead of Argentina (6.5 per cent), Peru (6.5 per cent), Uruguay (6.5 per cent) and Venezuela (6.0 per cent), according to data presented by ECLAC Thursday. Brazil - the largest economy in the region and the 10th-largest in the world - is expected to grow at least 5.0 per cent in 2008. Ecuador, Mexico, Bolivia and Nicaragua, in turn, will continue to lag behind regional dynamism, with growth rates of 3 to 4 per cent. The greatest risks for Latin America, according to ECLAC, are linked to global inflation, which could trigger restrictive policies by central banks. ECLAC rejects this option, and favours restrictions to public spending as an alternative. External threats are led by international turbulences and a potential deceleration of the US economy, which would heavily affect Mexico and Central America. Productive activity is set to decrease regional unemployment from 8 to 7.5 per cent, the lowest rate since 1990. This is likely to lead 1.5 million people to find jobs in 2008, allowing poverty figures to fall below 200 million people for the first time since 1990. ECLAC executive secretary Jose Luis Machinea described the economic situation of the region as "an unprecedented window of opportunity." Machinea noted that the region should invest in infrastructure and energy.
