Latin America and the Caribbean are predicted to see their economies grow by 3.8 percent in 2013, as against this year's 3.1 percent.

In a report released on Tuesday, the Economic Commission for Latin America and the Caribbean (ECLAC) of the United Nations said that the region will wrap up this year with a 3.1-percent GDP growth, higher than the expected world growth of 2.2 percent, but lower than the 4.3 percent achieved in 2011.

This shows the global economic crisis has had a negative but not a dramatic impact on the continent, the report said.

Next year the region's growth will be around 3.8 percent, especially driven by the economic recovery in Argentina and Brazil, as well as the continued internal demand in several countries, the report added.

The report further pointed out that the region's performance is affected by the slower growth in Argentina and Brazil, two of its largest economies, which are expected to post a recovery in 2013, with a 3.9-percent GDP growth for Argentina and 4 percent for Brazil.

"The challenges for Latin America and the Caribbean are still to increase and stabilize investment growth, and not to depend exclusively on consumption as a means of driving structural change with equality, incorporating technical progress and delivering sustainable growth," said ECLAC's Executive Secretary Alicia Barcena who presented the report.

Another positive trend for the region is the urban unemployment rate slipped from 6.7 percent in 2011 to 6.4 percent in 2012, a slight but significant improvement amid a slowing world economy, said ECLAC.

Xinhua