Canada’s economy is suddenly looking brighter on several fronts, but analysts aren’t optimistic that it’s going to last.

Economists are marking up their forecasts for economic growth, and they expect the Bank of Canada to do the same when it releases its monetary policy report this week.

Bank of America Merrill Lynch, for example, believes Canada’s economy expanded at an annual pace of 3.5 per cent in the forecast, and that growth for this year will come in at 1.8 per cent.

“Canada is benefiting from a number of small positives, including the boost from low rates, a weak currency and federal fiscal stimulus,” said the bank’s North America economist, Emanuella Enenajor.

“In contrast, the U.S. economy is still dealing with the lagged effects of dollar appreciation,” she added.

“For now, markets are still pricing in slight odds of an ease from the Bank of Canada this year and next. In contrast, we don’t think the BoC will ease: The economy looks to be on a stronger foot and is even rivalling growth in its neighbour to the south.”

Toronto-Dominion Bank, too, noted the economic gains of late – from a stronger-than-expected GDP reading to a much stronger-than-expected jobs market showing to housing markets that refuse to say “uncle” in Toronto and Vancouver.

“Not to put a damper on this parade, but the pop in economic growth in [the first quarter] may prove temporary,” said TD economist Diana Petramala, adding that Alberta’s sharp job gains in March are probably unsustainable.

“While the Canadian economy appears to be beating expectations (both ours and the Bank of Canada’s) in the first quarter of 2016, economic growth is expected to settle into a softer 2-per-cent pace for the remainder of the year,” she added.