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Almost out of nowhere, Canada has become one of the fastest growing economies in the developed world.

The oil-producing nation, which struggled mightily with falling crude prices the past two years, grew at an annualized pace of almost 4 per cent in the first quarter, according to the Bank of Canada’s latest estimates. No other Group of Seven economy even came close.

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For all 2017, the central bank is projecting 2.6 per cent growth — which would put the economy at the top of the rich-country growth scale.

Yet even with the economy suddenly running hot, caution prevails. The Canadian dollar has had a middling performance despite the strong economic numbers.

At a rate decision last week in Ottawa, Canada’s central bank revised up growth projections for 2017, but cut them for 2018. It also raised questions about the sustainability of the rebound and the country’s long-term growth outlook.