World Bank Sees GDP Slide in LatAm

The World Bank says it expects GDP in LatAm and the Caribbean to decline to 4.5% in 2011, down from its 3-decade high rate of 6% in 2010. GDP is expected to ease in 2011 before slowing toward 4% by 2013, a rate that is consistent with underlying potential. Peru is expected to lead the region with 7% growth this year before sliding to 5.2% in 2013. Colombia is expected to grow 4.7%. Strong growth in developing economies has contributed to a new set of global challenges, including higher commodity prices, rising inflation, and the possible return of destabilizing capital inflows as monetary policy tightens and interest rates rise.