The Group of Eight industrialized nations have begun preparing for an economic recovery, acknowledging on Saturday "signs of stabilization in our economies" and agreeing to ask the International Monetary Fund to study ways to unwind hefty stimulus packages.
In a communique released at the end of a two-day meeting, the group's finance officials said that although the global economy is still weak, so-called exit strategies from monetary and fiscal stimulus measures -- like tax cuts and lower interest rates -- were "essential to promote a sustainable recovery over the long term."
The ministers said they had asked the IMF to analyze potential strategies to assist with the process.
However, ministers from the US, Japan, Germany, France, Britain, Italy, Canada, Russia and the European Union added that the "situation remains uncertain and significant risks remain to economic and financial stability'' and stressed their commitment to provide any more stimulus the economy might need.
"These early signs of improvement are encouraging, but the global economy is still operating well below potential and we still face acute challenges," US Treasury Secretary Timothy Geithner said after the meeting.
The talks here were designed to set an agenda for a meeting of G-8 heads of state next month in L'Aquila in central Italy.
Source : NDTV Profit
0 comments:
Post a Comment