WASHINGTON, April 11 (Xinhua) -- The International Monetary Fund on Wednesday urged Latin America, whose economic growth lags other regions, to reverse its productivity performance to promote sustained growth.

    Economic growth in Latin America is projected to ease to 4.9 percent this year from 5.5 percent in 2006, according to the annual World Economic Outlook released by the IMF.

    "The external environment is expected to become somewhat less favorable as global growth moderates and oil and metals prices decline from the record levels of 2006," said the report.

    Countries and regions that have particularly close trade links with the United States, such as Mexico, Central America, and the Caribbean, or are significant exporters of oil and metals, such as Chile, Ecuador, Peru, and Venezuela will be most affected, the report said.

    But on the other hand, lower oil prices will benefit countries that are not significant exporters of commodities, such as many in Central America and the Caribbean, the report concluded.

    The report urged the Latin American countries to make reforms to increase economic openness, improve the business climate, and deepen the financial sector to ensure credit is available to finance investment projects at competitive interest rates.

    "The critical challenge for (Latin American) policy makers is to build on the reforms that have so far been implemented to accelerate growth further, entrench macroeconomic stability, and ensure that the benefits of growth are widely distributed," said the report.