Peru has enjoyed uninterrupted growth for a decade, but now it's time to pass on the torch to another country. Peru's neighbor to the north, Colombia, now leads with the fastest growing economy in the region.

In an article appearing in The Economist's newest edition, the magazine explains how Colombia overtook Peru and the differences in policy as well as luck that has been helping Peru's northern neighbor.

According to The Economist, Colombia has benefited from the work of its finance minister, Mauricio Cardenas, who has helped implement reforms beneficial to the economy. Colombia's economy has grown by 6.4 percent in the first quarter and continues to grow in the second, the article argues. Peru, on the other hand, is experiencing a "hiccup," in the words of its economy minister, Luis Miguel Castilla.

Colombia, the article argues, has also benefitted from its commodity exports, mainly oil and coal, which have enjoyed steady prices. The price of Peru's main exports however, copper and gold, have faltered in the last couple of years. Colombia has also introduced reforms in housing that have helped construction grow at over 10 percent a year, The Economist explains.

There are also plans to build more roads as well as modify the tax system by cutting payroll taxes while raising income taxes on those with higher income. As Colombia's economy continues to grow at such high speed, the country has also begun control inflation.

Bloomberg reports that Colombia's central bank has again raised the country's overnight lending rate. This is the fourth consecutive time the bank raises Colombia's lending rate.

The seven-member panel decided to increase the rate by a quarter point, making it 4.25 percent, according to Bloomberg. And, the bank's governor, Jose Dario Uribe, predicts the country's 2014 growth forecast will increase to 5 percent from the 4.3 originally belived.

"Aggregate demand has maintained strong growth in the context of near full employment," the central bank Governor said. "At the same time, inflation expectations are close, or slightly higher, than 3 percent."