However, growth in the housing sector is expected to slow from exceptionally high rates, and we are already seeing this in the most recent data on housing starts and resales. It is too early to tell how the recent housing measures introduced in Ontario will ultimately affect activity and prices in and around Toronto.
In Vancouver, when similar measures were introduced last year, we saw the market cool for a period of time. But it is picking up again. So, given we expect household spending to slow somewhat, it could surprise us and provide an unexpected boost to growth in the near term, which is another risk we mentioned in April.