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Macleans.ca

Canada’s magazine

Talking stimulus with economist Dale Orr

Today brings a belated new tone of realism in high places about the state of the economy. Finance Minister Jim Flaherty—who predicted, in his absurdly upbeat Nov. 27 economic update, no recession and no federal deficits—now allows that the GDP will shrink by 0.4 per cent next year and the federal government will post a deficit of at least $5 billion.