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The economy in the United States is set to post real GDP growth in 2012 of approximately 2.5%. After a strong start in the first few months of 2012, a bout of market fears generated by the disarray and confusion in Europe and rising concerns over the pace of the slowdown in global trade had the effect of freezing corporate expansion plans and slowing the pace of net new job creation. Progress in the European sovereign debt and banking system debacle along with more economic stimulus from China suggests second half US economic growth will be slightly better than the first half. While the 2012 hurdles for the US economy were largely sourced from the international arena, longer-term challenges are more likely to be home grown, in the form of a lack of market confidence in both fiscal and monetary policy that may slow growth prospects for 2013.