“Even if reforms do not take place, the growth rate should be between 3.5% and 4% per year,” according to an analyst in a Bloomberg report.
“In the next decade Mexico is likely to become LatAm’s largest economy and one of the most dynamic among emerging markets,” Nomura analyst Benito Berber said in a report.
However, weakness in the Mexican peso could diminish the returns on the EWW ETF. The Mexican peso currently trades at 13.12 per U.S. dollar. Nomura Holdings has reduced its year-end projection for the peso to 13.85 per U.S. dollar from 12.80 due to the ongoing European debt crisis, according to Bloomberg.
The peso “is particularly sensitive to global risk-on and risk-off periods,” Benito Berber, a strategist for the bank, said. “The eurozone crisis has yet to reach its climax.”
iShares MSCI Mexico Index Fund
For more information on Mexico, visit our Mexico category.
Max Chen contributed to this article.