The Lima Stock Exchange is set to be the world’s top performing equity market in 2016. The broad-based MSCI index has delivered a dollar-based return of 50%, excluding dividends. Those gains defy logic. The economy is heavily geared to copper and gold; the nation faced a heated presidential election in the first half of the year. Amid GDP growth likely to exceed 4.0% in 2017, the key message now is market resiliency. One reason is that the new president is a former Washington insider with the mettle to challenge arbitrary US policies. Another may be cozy ties between Lima and Beijing, making the nation impervious to a failed Trans-Pacific Partnership. Going forward, Peru should benefit as a beacon of political stability. It is one of the few nations in the region that will not face a federal election over the next two years. ■
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Image shows Plaza de Armas in Lima. Credit: Jackylyric at Can Stock Photo Inc.