This paper uses a stochastic general equilibrium model for a small open export-oriented economy to address two key issues. First, it analyses the impact of deep habits in such an economy. Habits refer to consumers’ tendency to maintain a consumption level similar to previous periods, while deep habits indicate a tendency related to each consumed good rather than just the overall consumption level. We present a model in which the formulation of deep habits differs from the conventional one, taking into account imports in consumption. Second, we compare different financing options for growth in government spending.