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Panama’s unprecedented run of economic growth will continue through 2017, according to the latest government forecasts.

Based on the new data, Panama’s economy should grow by 5.8 percent in 2017, the fastest pace in Latin America, the Ministry of Economy and Finance announced. The projection is in line with forecasts from the International Monetary Fund, the Economic Commission for Latin American and the Caribbean (ECLAC) and the World Bank, the ministry noted in a statement.

In contrast, ECLAC projects the average growth in Latin America will be 1.3 percent, the Ministry notes.

Several factors contributes to Panama’s economic strength, which provides a solid foundation for the local real estate market. Part of that strength comes from diversification, which means Panama’s economy is not reliant on the Panama Canal for growth. Expanding sectors include construction, mining, finance, and public services, as well as public infrastructure and energy generation, according to the Ministry.

Several large public infrastructure projects are helping fuel the growth, including the third bridge over the Panama Canal ($570 million), Ciudad Esperanza ($137 million) and Line 2 of the Metro, the Ministry’s statement notes. Private sector projects include the first natural gas generation plant in Latin America ($1.1 billion) and the Cobre Panama mining project, which calls for an investment of $6 billion.

While the growth rate is nowhere near the double digit increases of a few years ago, the latest data demonstrates that Panama’s current growth is sustainable. The Ministry expects 2016’s growth rate to fall between 5 percent and 5.2 percent, which is slightly less than the World Bank’s estimate of 5.6 percent growth.

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