Economics: World Bank warns that Argentina's and Venezuela's high growth rates are unsustainable

In its annual Global Economic Prospects report, the World Bank states that policies that have led to high growth rates in Argentina and Venezuela are unsustainable and warned there were already signs of overheating in Argentina "which they are hiding".

The report says the pace of growth in both countries was likely to ease by 2008, but warned there was a risk of a "hard economic landing" if the slowdown did not materialize.

It said the slowdown, starting this year, would likely prompt a decline in growth across Latin America to 4 percent by 2008, from a projected 5 percent in 2006 and 4.2 percent in 2007.