G-8 nations see signs of economic recovery

Citing "signs of stabilisation" in their economies, G-8 finance ministers have decided to ensure that such trends emerging in the global economy should be nurtured and asked the IMF to study exit strategies to "unwind" their hefty stimulus packages.

Citing "signs of stabilisation" in their economies, G-8 finance ministers have decided to ensure that such trends emerging in the global economy should be nurtured and asked the IMF to study exit strategies to "unwind" their hefty stimulus packages.

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On macroeconomic conditions, the ministers recognised that the coordinated policy action implemented so far has borne some fruit, citing a recent rise in stock prices, a decline in interest rate spreads, and improved business and consumer confidence.

"There are signs of stabilisation in our economies," said a joint statement of the ministers from the G-8 countries -- Britain, Canada, France, Germany, Italy, Japan, Russia and the United States -- after their two-day meeting in Lecce, Italy.

"I was left with a strong impression that each country has the feeling that the economy is bottoming out," Kyodo news agency quoted Japanese Finance Minister Kaoru Yosano as saying in the southern Italian city last night.

But the ministers agreed not to relax their ongoing efforts until the global economy moves back onto a self- sustained recovery track and called for vigilance over persisting downside risks such as worsening employment trends.

"Even after output growth begins picking up, unemployment may continue to increase," the ministers said, adding that the countries will take all necessary steps to ease the impact of the crisis on employment.