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by Vincent Mallardi
The New Year economic forecast calls for gross domestic product growth of 3.8 percent, compared to a less-than-forecast 3.5 percent GDP change in 2004. This nascent "recovery" will provide a 5 percent printing sales increase—but with less value-added.
Energy costs and a runaway international trade deficit are sapping economic vitality, especially in capital investment. Interest and inflation are moderately increasing, which means that deflated (or constant dollar) GDP could slide to zero or less, with real printing sales change diminishing to around 3 percent. This is also occurring in the European Union.
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