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“What I do think is that, as the economy does better, that puts people in a better situation to face whatever the challenges — whether it’s a different economic environment, a personal situation or a change in global environment,” he said. “These are all things people are more resilient against when the economy is doing better.”

Canada added 45,300 jobs in June, the seventh consecutive monthly gain and four times as much as economists had predicted, according to data released Friday. Morneau cited that along with robust quarterly growth data as evidence of the economy’s strength, though risks such as a housing correction and persistently sluggish commodity prices continue to warrant caution.

“What we see back in Canada is that the global economies are positive, but the Canadian economy is really firing on all cylinders,” Morneau said.

Housing Concerns

The real-estate market is starting to level off, in part after measures from Morneau to tighten mortgage rules. The federal moves have so far “been positive,” he said, but housing remains “a risk for Canadian consumers that we know we need to manage.”

Morneau, who presented his second budget earlier this year, is preparing a fall fiscal update that’s expected to include new policy measures. The strengthening economy is improving the government’s outlook, a potential political windfall for Morneau and Trudeau, who are running annual deficits of nearly $30 billion. While modest globally — the debt-to-GDP ratio is stable — they are a potential electoral problem in a country that has been deficit-averse for a generation, and are three-times the scale the governing Liberal Party campaigned on.