The world's largest economies are beginning to stabilise but still face major risks amid an ongoing global recession, G8 finance ministers say.
At a meeting in Italy of G8 nations, the ministers said stock markets were rising, interest rates more stable, and consumer confidence was returning.
However, US Treasury chief Tim Geithner led warnings that it was too early to wind down economic stimulus packages.
He said they should remain in place until a global recovery was under way.
At the meeting in Lecce, which aimed to lay the groundwork for a full G8 heads of government conference next month in the earthquake-hit town of L'Aquila, the finance ministers conceded that the global situation "remains uncertain".
"Significant risks remain to economic and financial stability," the ministers said in a statement released at the end of their meeting.
It highlighted the possibility that unemployment could continue to rise even after output growth resumes.
Joint problems
But they agreed a joint statement which offered signs of hope after nine months of gloomy economic news.
"We have taken forceful and co-ordinated action to stabilise the financial sector and provide stimulus to restore economic growth and there are signs of stabilisation in our economies," the statement said.
Mr Geithner said the "early signs" were encouraging, but injected a note of caution.
"The global economy is still operating well below potential and we still face acute challenges," he said.
At a meeting in Italy of G8 nations, the ministers said stock markets were rising, interest rates more stable, and consumer confidence was returning.
However, US Treasury chief Tim Geithner led warnings that it was too early to wind down economic stimulus packages.
He said they should remain in place until a global recovery was under way.
At the meeting in Lecce, which aimed to lay the groundwork for a full G8 heads of government conference next month in the earthquake-hit town of L'Aquila, the finance ministers conceded that the global situation "remains uncertain".
"Significant risks remain to economic and financial stability," the ministers said in a statement released at the end of their meeting.
It highlighted the possibility that unemployment could continue to rise even after output growth resumes.
Joint problems
But they agreed a joint statement which offered signs of hope after nine months of gloomy economic news.
"We have taken forceful and co-ordinated action to stabilise the financial sector and provide stimulus to restore economic growth and there are signs of stabilisation in our economies," the statement said.
Mr Geithner said the "early signs" were encouraging, but injected a note of caution.
"The global economy is still operating well below potential and we still face acute challenges," he said.
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