World economy is stabilising, says G8
At the meeting, Alistair Darling warned that talk of an exit from the financial crisis was premature
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Sunday, 14, Jun 2009 05:19
Finance ministers from the G8 countries have said that the world's biggest economies are starting to show signs of stability.
In a communiqué issued after the talks in the Italian city of Lecce, the ministers from Canada, France, Germany, Italy, Japan, Russia, the UK and US also warned that significant action would still need to be taken to tackle unemployment which is likely to rise even as output begins to rise.
The joint statement from the group said: "We have taken forceful and coordinated action to stabilise the financial sector and provide stimulus to restore economic growth and there are signs of stabilisation in our economies, including a recovery of stock markets, a decline in interest rate spreads, improved business and consumer confidence, but the situation remains uncertain and significant risks remain to economic and financial stability."
They warned that action would still need to be taken in the midst of a recovery to restore consumer and investor confidence and to support employment prospects.
They also resolved to continue to take action to ensure the soundness of the banking system and also urged the International Monetary Fund to begin looking into how to address the fallout from the extraordinary measures needed to stabilise the banking sector.
A Lecce framework was also agreed outlining common principles and standards on the conduct of international business and finance to ensure stable growth over the long term.
Ministers at the meeting also resolved to take coordinated action against tax havens, money laundering and to maintain financial sanctions on Iran and North Korea.