The Canadian economy will expand 1.8% in both 2018 and 2019, a slowdown from 3.0% in 2017, according to The Conference Board of Canada.

The export sector will remain on shaky ground over the near term as rising protectionist measures from the US and continued uncertainty surrounding the outcome of the North American Free Trade Agreement renegotiations dominate and undermine the sector’s outlook, according to the latest Canadian Outlook Bulletin.

Export growth will be limited to 1.4% this year, weighed down by recently enacted tariffs on softwood lumber, steel and aluminum.

The outlook expects stronger wages will help sustain consumer spending; however, high debt levels, rising interest rates, easing home prices, and higher inflation will result in a slower rate of increase.

“An easing pace of consumer spending, potential breakup of NAFTA and daily threats of new tariffs across a wide range of goods, including in the automotive sector, will weigh on Canada’s economic growth prospects,” said Matthew Stewart, director, national forecast, at The Conference Board of Canada.