Higher borrowing, overheated housing markets are vulnerabilities
The C.D. Howe Institute says budget forecasts downplay the risk of rising government debt
Strong mortgage borrowing drives liabilities to over $2.5 trillion in May
Portfolio flows turned positive in May as foreign debt purchases outweighed Canadian investors' appetite for U.S. stocks
The agency affirmed Canada's AA+ rating, although debt remains a concern
The household debt service ratio also fell while the household savings rate rose
The largest increases in consumer debt were in British Columbia and Ontario
Buildup in debt poses a long-term risk to banks' operating environment
The unprecedented figure was caused by an equally unprecedented economic shock
The PBO estimate that budget deficits over the next five years will be $117.1 billion more than pre-budget forecasts