Flaherty offers no hints of stimulus package

Finance Minister Jim Flaherty made no promises Monday that a stimulus package might be forthcoming when he delivers his economic update later this week.

The federal government will update the House of Commons on where it expects the Canadian economy is headed, Flaherty said during a news conference, but he didn't offer any plans for a broad support package.

Britain on Monday became the latest country to unveil a scheme to try to stimulate its domestic economy in the face of global financial turmoil.

Flaherty said the Canadian government has already put stimulus into the economy equal to about two per cent of the country's gross domestic product.

"Fortunately, we acted in advance," Flaherty told reporters. "A lot of countries have had to play catch-up on that stimulus."

Flaherty said the government is eyeing infrastructure projects that could be started quickly.

Technical recession possible

Flaherty also told reporters that the country is not in a recession right now.

"Going forward, I think it is reasonable that we may have a technical recession," he said, meaning the current quarter and first quarter of 2009 are expected to see the economy contract.

On Sunday, at the Asia-Pacific Economic Cooperation group's summit in Lima, Prime Minister Stephen Harper made similar comments that the economy appears headed for a technical recession and might have already slowed to "just about zero" growth.