As America's massive trade deficit continues to grow, prospects for GDP growth continue to shrink, as the AP's Jeannine Aversa reports:

The economy, as measured by gross domestic product, is projected to expand by 3.4 percent in 2005, compared with an earlier estimate of 3.6 percent, according to the latest outlook from the National Association for Business Economics.

The lower forecast mostly reflects economists' beliefs that the trade picture will worsen. The U.S. trade deficit, which ballooned to a record $617 billion last year, is a politically sensitive subject for the Bush administration.

"Virtually the entire reduction in the panel's estimate of GDP growth in 2005 was due to a much deeper projected trade deficit of $662 billion this year," Carl Tannenbaum, who oversaw the survey, said in an interview.

[...]

On the inflation front, consumer prices are expected to rise this year by 2.8 percent, compared with a previous forecast of 2.2 percent.

Despite claims by this Republican administration and some Democratic leaders that completely unregulated free trade is always good for the American economy, this new report shows that this belief is not wholly true. That is not to say that the United States should revert to isolationist business practices to shelter inefficient industries. However, it's clear that by allowing American jobs to be shipped to China and India, the Bush administration is not strengthening America.

Deficits, both budgetary and trade, do matter. And it's time for President Bush and his Republican allies to do something about them. The GOP controls all levers of government these days, so the onus lies squarely on its members. Should the Republicans be unable to restore days of fiscal and trade balance, they should be held to account.