Economy will continue to grow, Paulson says

WASHINGTON (Reuters) - Treasury Secretary Henry Paulson on Thursday, when asked if the economy would likely fall into recession, told lawmakers that the U.S. economy will continue to grow.

"I believe that we are going to continue to grow, albeit at a slower rate, but risks are to the downside," Paulson told the U.S. Senate Banking Committee in answering questions after testifying before the panel.

The Treasury secretary added that the administration acted quickly to help boost the economy out of a downward spiral brought on by the housing slump and credit crisis. "We didn't sit back and wait," he said.

(Reporting By Joanne Morrison; Editing by James Dalgleish)