Wed Jan 23, 2008 9:24am EST
WASHINGTON (Reuters) - The current U.S. economic slowdown will not turn into a recession and the economy will likely rebound next year as housing and financial market turmoil fades, the Congressional Budget Office forecast on Wednesday."Although recent data suggest that the probability of a recession in 2008 has increased, CBO does not expect the slowdown in economic growth to be large enough to register as a recession," the nonpartisan congressional budget analyst said in a new forecast.
"CBO expects the economy to rebound after 2008, as the negative effects of the turmoil in the housing and financial markets fade," the budget and economic report to Congress said.
