In April, the International Monetary Fund forecast 2014 GDP growth of 5.5% for Peru. That compares with 4.5% for Colombia and just 1.8% for Brazil. Brazil and Colombia are South America’s largest economies. The IMF expects Peruvian GDP to rise 5.8% next year and noted the country’s 2.5% rate of inflation is the second-lowest in Latin America behind Colombia.
Credicorp (NYSE: BAP), EPU’s largest holding with a weight of nearly 23%, has “rallied over 20% in the past two months, and trade at 13 times forward earnings estimates,” according to Barron’s.
iShares MSCI All Peru Capped ETF
ETF Trends editorial team contributed to this post.