The US economy in 2008 will grow at a similar pace to 2007, despite widespread fears of a recession, according to a report from the White House.
The annual Economic Report of the President says the US can expect to see growth of around 2.7%, despite recent shockwaves in financial markets.
However, the report concedes that problems emanating from the credit crunch could hamper growth.
The US Government has already proposed a $167bn economic stimulus package, including tax rebates, to help prevent a recession.
In addition, the US Federal Reserve has cut interest rates by 1% since the beginning of the year, to 3%.
The report says economic growth will be slow in early 2008 but is expected to strengthen in the latter part of the year.
President George W Bush says the report indicates the economy is structurally sound but will suffer from short-term uncertainties.
The report predicts growth to reach 3% in 2009.
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