Data published today show the Canadian economy expanded by 3% last year.
That said, Canada’s 2017 performance owes a lot to a robust first half of the year, masking a significant slowdown in the second half.
This waning momentum will make it hard to stay on top in 2018. What’s more, the US—Canada’s largest trading partner by far—is imposing import tariffs, cutting taxes, and boosting spending. Although this may not necessarily boost the American economy as much as the White House says it will, it could still be enough to leapfrog its northern neighbor.