26 July 2018

the uncertainty around trade restrictions, especially NAFTA, is affecting the growth forecasts and depends greatly on political decisions, particularly from the US.

The second problem combines high household debt and growing home prices.

According to OECD, these factors may cause a sharp market correction, reduce residential investment and household wealth. Moreover, it could lead to lower consumption.

Growing real estate prices have already increased the macroeconomic threat and influenced housing affordability negatively, OECD says.

Pointing to the recent policy changes, the report advised the government to keep a close eye on the influence of those rules, paying particular attention to high-debt, low-income borrowers, who are most vulnerable to interest rate hikes.