Canada’s economy is expected to grow by 2.6% in 2017 before slowing to 1.9% in 2018, according to an updated economic growth forecast released by The Conference Board of Canada.

Household spending is one of the main drivers of this year’s strong economic performance. Consumer spending is set to grow 2.9% this year — the fastest increase in seven years, The Conference Board reported. Next year, however, elevated debt levels, slowing job growth, and easing house prices will take some of the steam out of consumer spending.

“The Canadian economy has shifted into high gear, thanks to strong household spending and strong home construction,” said Matthew Stewart, associate director, national forecast, at The Conference Board of Canada. “However, Canada’s current rate of expansion is unlikely to last, with growth expected to fall back below 2% in 2018.”

The last few quarters of well-above potential growth have absorbed much of Canada’s excess economic capacity and the Bank of Canada is expected to continue its policy of tightening to avoid overshooting its inflation target. The Conference Board of Canada expect another rate increase in October and two more in 2018.

Separately, the Bank of Canada estimates real GDP growth will moderate further over the projection horizon, from 2.8% in 2017 to 2.0% in 2018 and 1.6% in 2019. The bank this week raised its target for the overnight rate to 0.75%; the bank rate is correspondingly 1% and the deposit rate is 0.5%.

“The global economy continues to strengthen and growth is broadening across countries and regions,” the Bank of Canada stated in a press release. “The US economy was tepid in the first quarter of 2017 but is now growing at a solid pace, underpinned by a robust labor market and stronger investment. Above-potential growth is becoming more widespread in the euro area. However, elevated geopolitical uncertainty still clouds the global outlook, particularly for trade and investment. Meanwhile, world oil prices have softened as markets work toward a new supply/demand balance.”