White House economists have said the US economy will grow in 2008 and avoid a recession despite a lingering housing slump and a related credit crunch.

The annual 'Economic Report of the President' said the world's largest economy had absorbed shocks in the past and that Congress's approval of a $150 billion economic package last week would help bolster growth.

The report forecasts that US growth will remain at 2.7% in 2008 compared with a similar assumption for 2007, and sees growth accelerating to 3% in 2009.

The White House projections contrast with forecasts by some private economists, some of whom believe the US economy is on the  cusp of or has already fallen into a recession.

The White House report warns, however, that the troubles affecting the mortgage and credit markets could dent growth.