Prime Minister Stephen Harper speaks during Question Period in the House of Commons on Parliament Hill in Ottawa on Wednesday. (Blair Gable/Reuters)

Prime Minister Stephen Harper defended his economic stimulus plan on Wednesday, saying the action taken by his government goes beyond the recommendations of the International Monetary Fund.

Harper was hammered by Liberal Leader Michael Ignatieff over the government's response to the global economic downturn in the wake of two pessimistic reports about the economic recession released this week.

"As the leader of the Opposition will know, this government brought in a much larger fiscal stimulus package than the international monetary fund was actually calling for," Harper said during question period in the House of Commons.

"Obviously there are important measures there, particularly how they effect those who are unemployed and those who will be seeking new jobs, and we will make sure we do whatever is necessary to help those people."

Harper quoted the IMF report, which said "fortunately conservative monetary and fiscal policy management" of the economies of Canada, Australia and New Zealand "now leave policymakers better placed to mitigate further declines in demand."

On Wednesday, the IMF released a report projecting the world economy will contract by 1.3 per cent this year — the deepest recession since the Second World War. Canada, it said, is projected to see economic contraction of 2.5 per cent this year.

On Tuesday, the Bank of Canada said the recession in Canada will be deeper than anticipated, with the economy projected to contract by three per cent in 2009 — a significant change from the bank's January forecast, which predicted a contraction of 1.2 per cent this year, followed by growth of 3.8 per cent next year.

"Does the prime minister understand that the assumptions of his January budget no longer hold?" Ignatieff said. "Will he revise his own projections in respect of revenue and deficits and will he bring forward additional measures to help the vulnerable and working Canadians?"

Harper said the government will constantly analyze the situation and take whatever measures are necessary.

"But as the IMF and others have said, we are taking the appropriate course of action," he said.

In January, Harper announced a nearly $40 billion stimulus plan — the largest in Canadian history.