The U.S. economy will probably tip back into recession next yearif Congress doesn't address an impending “fiscal cliff,” theCongressional Budget Office said.

The nonpartisan agency said in a report today that the economywould contract at annual rate of 1.3 percent in the first half of2013 if lawmakers allow the Bush-era tax cuts to expire asscheduled and don't head off $1.2 trillion in government spendingcuts set to begin taking effect in January.

The economy would resume growing in the second half of nextyear, CBO said, at an annual rate of 2.3 percent.

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