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Federal government better positioned to provide stimulus

Amidst challenging economic times, the Conservative-led government has fulfilled its pledge to eliminate the Federal budget deficit and is now focused on fortifying its majority government in next year's election with some pre-election tax cuts and additional spending. Nevertheless, lower oil prices already threaten the budget outlook and we wouldn't be surprised if a housing-related slowdown in economic growth  forced policymakers to loosen the purse strings at some point in the next few years.

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