Obama: US economy has stepped 'back from the brink'

Sep 10, 2009, 9:16 GMT

Washington - The US economy has stepped back from its worst recession in seven decades and is on the road to recovery, President Barack Obama said in a rare address to Congress Wednesday night.

In a speech before both houses of Congress that was largely devoted to health care, Obama took credit for pulling the world's largest economy out of a deep crisis but warned there was more pain to come.

'Thanks to the bold and decisive action we have taken since January, I can stand here with confidence and say that we have pulled this economy back from the brink,' Obama said.

But he cautioned: 'We are by no means out of the woods. A full and vibrant recovery is still many months away.'

The United States has been in recession since December 2007, but most economists expect the downturn to end in the second half of the year.

A regional survey issued Wednesday by the Federal Reserve found that nearly all regions of the country reported their economies were stabilized or growing, but it warned that most regions were still experiencing 'flat' retail sales and 'weak' labour markets.

Obama's key measure to revive the economy was a 787-billion-dollar stimulus package that was narrowly approved by Congress in February.