G7 signals worst of world recession may be over

Group of Seven finance ministers and central bankers said after a meeting that economic activity should begin to recover later this year. However, they said the outlook remained weak and there was a risk that the global economy may still worsen. "We are right to be somewhat encouraged, but we would be wrong to conclude that we are close to emerging from the darkness that descended on the global economy early last fall," US Treasury Secretary Timothy Geithner said in a statement. It was a less dire assessment than the G7 finance officials delivered at their last gathering in February, when they warned that the severe downturn would persist through most of 2009 and made no mention of promising signs of stability. "Recent data suggest that the pace of decline in our economies has slowed and some signs of stabilization are emerging," the G7 said in a closing communique. "We will continue to act, as needed, to restore lending, provide liquidity support, inject capital into financial institutions, protect savings and deposits and address impaired assets. We reaffirm our commitment to take all necessary actions to ensure the soundness of systemically important institutions," the statement said. Japanese Finance Minister Kaoru Yosano said "signs of stabilization" was "an expression with a question mark."