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Growth to slow as housing boom cools

We expect GDP growth to halve from 3.0% in 2017 to 1.5% in 2018, as tighter regulation and higher borrowing costs bring the housing boom to an abrupt end. We anticipate that growth will remain weak in 2019, even as the Bank of Canada reverses course and lowers its policy interest rate again. The economy should regain momentum in 2020, however, with GDP growth accelerating back to 2.5%.

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