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Canada's Trudeau to remain in power but with minority government

(SOUNDBITE) (English) CANADIAN PRIME MINISTER, JUSTIN TRUDEAU, SAYING:

"From coast to coast to coast tonight, Canadians rejected division and negativity."

Justin Trudeau's Liberals are projected to win Canada's elections - but lose their majority.

It means that the country's incumbent prime minister will hold on to his job.

(SOUNDBITE) (English) CANADIAN PRIME MINISTER, JUSTIN TRUDEAU, SAYING:

"You are sending our liberal team back to work, back to Ottawa with a clear mandate. We will make life more affordable. We will continue to fight climate change. We will get guns off our streets and we will keep investing in Canadians."

But the 47-year-old will enter a second term with less power than before.

And will now need the support of a smaller left-leaning party in order to govern.

Trudeau is seen as one of the world's most high-profile progressive leaders.

He took power in 2015 as a charismatic figure promising "sunny ways" and championing diversity.

But his hard-fought election campaign has been tainted by scandal.

His popularity dropped as old photos of him in blackface emerged.

And his handling of a corporate corruption case was widely criticized.

In August, a top watchdog said Trudeau breached ethics rules.

Canada's economy, though, has been on a general upswing in 2019.

The Canadian dollar has been the best-performing G10 currency this year.

As the economy added jobs at a robust pace and inflation stayed closed to the Bank of Canada's 2% target.

Ahead of the vote, polls had shown a tight race between Trudeau and his main rival, Conservative leader Andrew Scheer.

Preliminary results showed the Conservatives actually won the national popular vote.

But Sheer's hopes for a major breakthrough were dashed as his party trailed behind in a number of seats.

U.S. President Donald Trump, whose relationship with Trudeau has been testy at times, tweeted his congratulations "on a wonderful and hard fought victory".

Minority governments in Canada rarely last more than 2 and a half years.