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Forecast: Slow economy and a Democratic White House

How’s this for a bold prediction? Not only should investors brace for a sluggish economy next year, but 2009 will see a Democrat president into office, economists predict. The financial outlook for 2008 dimmed two days before Thanksgiving when the Federal Reserve projected GDP growth of 1.8% to 2.5% for next year, down from the previous forecast of 2.5% to 2.75%. For commercial real estate investors, that expected decline from the third quarter’s 3.9% GDP growth foretells that many companies will grow reluctant to sign long-term leases in 2008. These firms could also gain the upper hand in ...

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