There are two major fiscal developments. There is the Tax Cuts and Jobs Act that was passed into law on December 22 last year, then there was also the Bipartisan Budget Act that came into force on February 9.
For the former, with respect to the tax cuts, we've taken an estimate by the staff of the Joint Committee on Taxation and basically taken their estimated economic impact on U.S. GDP of about 0.7% over the course of our projection. Then, with respect to the Bipartisan Budget Act, we've looked at what the Congressional Budget Office has predicted in terms of additional government spending over the medium term by the U.S. We've used their fiscal multipliers, essentially meaning how much they estimate that government spending will translate into economic activity.
We've come up with two impacts on the level of U.S. real GDP. Once we had those impacts, we brought those into our Canadian macroeconometric model. We estimate that this would lift Canada's real GDP by 0.1% in 2018, which will rise by 0.25% by the end of our projection period, primarily through higher exports.