America has entered 2008 in greater danger of recession than at any stage since the collapse of the internet bubble in 2000-01, as the world's largest economy struggles to maintain growth in the face of the credit squeeze, a housing slide and high oil prices.

Fourth-quarter growth for 2007 looks likely to come in at 1 per cent or less on an annual basis, while the current three months are unlikely to be much better and could even be worse. The only question is whether the economy will struggle through this sickly period and gradually regain strength over the course of the year - or succumb to its ailments and, with growth turning negative, fall into recession.