International Monetary Fund (IMF) noted on Monday that although Canada’s economy shows good results, it faces significant risks, including trade tensions and potential reduction in competitiveness due to US tax reform, Reuters reports.

Bank of Canada raised interest rates three times since July 2017. It is expected that next rate hike will take place in July this year.

Canada’s housing market that was quite hot before shows signs of cooling due to higher borrowing costs and a whole range of policy measures.

However, there are more and more concerns about economy due to trade disputes, unclear futures of North American Free Trade Agreement (NAFTA), as well as influence of US tax cuts.

It is expected that economy will grow by 2,1% this year. Last year the growth rate was 3%. In short term, the economy will be supported by higher oil prices and strong US growth that will stimulate export.