By DPA
Santiago : The economy of Latin America as a whole is to grow by 4.9 percent 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) has said.
Panama is expected to lead the pack with a growth rate of 8.5 percent, ahead of Argentina (6.5 percent), Peru (6.5 percent), Uruguay (6.5 percent) and Venezuela (6.0 percent).
Brazil – the largest economy in the region and the 10th largest in the world – is expected to grow at least five percent in 2008.
Ecuador, Mexico, Bolivia and Nicaragua, in turn, will continue to lag behind with growth rates of around four percent.
The greatest risks for Latin America, according to ECLAC, are linked to global inflation, which could trigger restrictive policies by central banks. ECLAC favours restrictions to public spending as an alternative.
Primary external threats to the growth include 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 by nearly half a percent to 7.5 percent, 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 and stressed that the region should invest in infrastructure and energy.