It is official - like we really needed the notification - we are in a recession.  So when I think about "getting out there to shop and support the local economy", I think "No, I'm going to stay in and make macaroni art for the people on my Christmas list."  I can't afford to go out and buy all kinds of expensive local items.

ON THE OTHER HAND, there are many really incredible local products and services that CAN be purchased within your existing budget.  You don't need to spend a lot to get a great gift, and if you've narrowed a gift down to a store, but not the particular item, ask the merchant if they have gift certificates so your recipient can pick out their own perfect gift. You can spend lots of money if you want, but I'm here to tell you that having a limited budget does not preclude buying local.  So you can knock things off your list and help local merchants out at the same time.

Does your gift recipient love:
(My mostly Portland-perspective answers off the top of my head are directly below.  However, I've included some sites below this list with a broader Maine perspective in mind.)

...to cook?  A one-night Piatto per Tutti cooking class with renowned baker/chef Stephen Lanzalotta at Micucci's.
...to read? If you go to Rabelais and can't find that perfect book for your recipient, just ask the owners, Samantha and Don, to suggest a literary match.
...chocolate?  How about Dean's Sweets or the Bar of Chocolate?
...coffee?  Try Matt's wood-roasted organic coffee.  You can order coffee online.  Check out the descriptions of the coffees - I think I'm in love with Ethiopia Korate Natural, and we haven't even met yet!  
...roast beef sandwiches? No question - Henry VIII Carvery.  You can get a gift card in any amount. 
...wine?  The Clown.  I love getting gift certificates from there!  They'll steer you to the right wine in your price range.  
...Italian groceries?  Micucci's is one of my favorite spots in Portland.  There is nothing like it in the area.  They win.  Old-world neighborhood grocery store, with real food. And Stephen Lanzalotta's bakery out back has, in my opinion, the best pizza in Portland, and the Luna's...OMG!
...fries cooked in duck fat?  Let's see, um, oh yeah, Duck Fat!  They sell gift certificates.
...vegetarian/vegan food?  The Pepper Club.  They sell gift certificates.  (They sell non-vegetarian food too, for us meat eaters dining with our vegetarian and vegan friends.)
...a really good baguette?  Standard Baking.  They bake them all day long so you can grab a fresh one.  Going to a dinner party and want to bring something?  Bring one or two of these.
...lobster?  Lobster and shrimp are pretty easy to find in Maine right now. 
...shrimp?  Ditto.  Shrimp season just opened today!!!
...a really good hunk of cheese?  This is a little self-serving, but check out my Maine "Deli Section" page for a list of Maine cheesemakers.

As you may have noticed, these are all food-related items.  For non-food-related gifts (and food-related gifts too), you don't have to look very far.  Here are a few sites to start you rolling. 

Portland:
East End Shops - join them for the upcoming Holiday Stroll on 12/6.
Portland's Buy Local Campaign and directory of local businesses

Other:
State of Maine Cheese Company's Rockport Marketplace
Maine Made's listing of over 1000 Maine producers by category

This is just a very small sampling of the many resources out there.  There are many store owners who want to meet your Christmas list needs.  Check them out.