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FISCAL VIEW: Liberal Prime Minister Justin...>

CANADA
(MNI) WASHINGTON
CANADA: FISCAL VIEW: Liberal Prime Minister Justin Trudeau's minority government
will likely boost deficits to the "mid-$20 billion range" from $14b last year,
RBC economists predict.
-Trudeau's Liberals lost majority in Oct. 21 election and need opposition
support to pass budgets and other confidence votes. NDP and Bloc opposition
parties likely to seek more spending.
-Bond market impact likely limited by favorable global comparison with Canada's
triple-A credit rating, historically low government bond yields this year.
-Finance Department Friday said Apr-Aug saw $5.2 billion deficit vs. $2.6b
surplus in year earlier period. Spending +9.1% YOY, revenues +2.9% YOY.
-Any extra fiscal stimulus won't be enough alter BOC view on economy, Scotiabank
says.
MNI Washington Bureau | +1 202-371-2121 | jean.yung@marketnews.com
MNI Washington Bureau | +1 202-371-2121 | jean.yung@marketnews.com

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