By Marcus Leach

According to The Economic Commission for Latin America and the Caribbean (ECLAC), the UN's regional economic body, economic growth in Latin America and the Caribbean is set to be 4.7% in 2011.

This surge in growth is down to strong domestic demand as more people are in work and able to access credit.

However, it is not all good news for the region, with ECLAC issuing a warning that there is a risk of worsening inflation, and capital inflows producing bubbles in both the financial and property markets.

The 4.7% forecasted rise represents a 3.6% increase in per capita GDP.

According to ECLAC the fastest growing economy will be Panama, 8.5%, with Argentina expected to see the biggest growth, 8.3%.

The report points to good news about jobs and in reducing poverty. Growth is being sustained largely by people being in a position to buy and consume more, while investment is on the rise.

Join us on
Follow @freshbusiness