Washington, Shawwal 9, 1435, Aug 5, 2014, SPA -- The United Nations' Economic Commission for Latin America and the Caribbean estimates that the region's economy will expand 2.2% this year, a sharp decline from a previous forecast of 2.7%. The projection is based on weaker external demand, less dynamic domestic demand, lagging investments, and limited room for putting in place policies to boost growth, according to the U.N. agency, known as Eclac. Growth has trended lower in the region over the past few years, with an expansion of 2.5% last year, 2.9% in 2012 and 4.3% in 2011, it said. Growth in Panama is seen leading this year at 6.7%, followed by Bolivia at 5.5%, then Colombia, the Dominican Republic, Ecuador and Nicaragua at 5.0%. Argentina's economy will barely grow this year, while Venezuela's economy could contract by 0.5%, the agency said. "In Chile and Peru, which will expand 3.0% and 4.8%, respectively, the decline in economic dynamism is linked to lower levels of investment and a deceleration in household consumption," Eclac said in a report released in Chile. "In Mexico, a rebound in growth is expected (2.5% compared with 1.1% in 2013), although the rate will be lower than previously forecast (3%), while Brazil will undergo a smaller annual expansion of 1.4%, compared with 2.5% last year," it added. --SPA 20:02 LOCAL TIME 17:02 GMT www.spa.gov.sa/w