MNI BRIEF: Carney Used Up Most Of Canada's Fiscal Room - PBO

Mark Carney's first budget used up most of the fiscal room available after Justin Trudeau resigned, according to the parliamentary budget office, a view contrasting with the current prime minister's optimism about the affordability of "generational investments" to ease a U.S. trade war.

Room for sustainable fiscal stimulus is now 0.1% of GDP, or CAD4.2 billion a year, down from space equal to at least 1.3% in the prior two years, according to the report released Wednesday. The PBO defines sustainable as keeping debt as a percentage of GDP little changed over the long term. (See: MNI: Canada Deficits Leave Room For Flexible BOC-Ex-Officials)