Economic decay easing - Geithner

Secretary Tim Geithner, meeting with G-7 finance chiefs, sees encouraging signs but warns world won't fully emerge soon from downturn.

EMAIL  |   PRINT  |   SHARE  |   RSS
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all RSS FEEDS (close)
By Jennifer Liberto, senior writer

The National Report Card
Obama's First 100 Days
You elected them... now grade them along with CNN's best political team! Rate the president, Congress and your state leaders in CNN's National Report Card
Wednesday, April 29th, at 7 p.m. ET

WASHINGTON ( -- The severe decay in the global economy is easing but serious problems still loom, Treasury Secretary Tim Geithner said Friday.

The pace of deterioration in economic activity and global trade has lessened, he said.

"But it is too early to say risks have receded," he said. "And it is too early to conclude that we're beginning to emerge from this remarkably challenging set of pressures still working its way through the financial system and global economy."

Geithner met with finance chiefs and central bankers from the G-7 countries who have convened in Washington to talk about their continued efforts to stimulate economies.

Since a high-profile G-20 meeting in London earlier this month attended by President Obama and other world leaders, several countries -- particularly Japan -- have boosted their economic recovery programs, Geithner said.

In addition, Poland and Colombia have said they will join Mexico to apply for backstop financing from the International Monetary Fund, a global agency charged with helping countries facing economic distress.

Geithner hammered home the need for nations to work together because of the complex links among national economies.

"I think we all recognize that the recovery of the world depends on recovery of the United States," he said. "Recovery in the United States depends on recovery in the financial systems. But our recovery, in part, will depend on the strength of what we see happening around the world."

For its part, the G-7 ministers and central bankers said Friday that the global economy will "begin to recover later this year" and vowed to continue to act in concert.

"As our leaders underscored in London, we are committed to act together to restore jobs and growth and to prevent a crisis of this magnitude from occurring again," the G-7 officials said in a joint statement.

In a Thursday briefing preceding the G-7 meeting, a top Treasury official acknowledged that banks' troubled assets pose the biggest challenge to getting the markets moving again in the United States and globally.

The G-7 is made up of United States, United Kingdom, Japan, Germany, France, Canada and Italy. To top of page

They're hiring!These Fortune 100 employers have at least 350 openings each. What are they looking for in a new hire? More
If the Fortune 500 were a country...It would be the world's second-biggest economy. See how big companies' sales stack up against GDP over the past decade. More
Sponsored By:
More Galleries
17 cool gadgets that tease the future Smart telescopes, surveillance for dogs, an electric roadster and more from CES 2018. More
These 12 airplane beds let you really sleep on a flight For the price of a premium class ticket, you may just get a space that's comfortable, private, and quiet enough to ensure a good rest. More
CES 2018 kicks off with oddball gadgets The biggest tech show of the year opened with a collection of quirky gadgets. More
Worry about the hackers you don't know 
Crime syndicates and government organizations pose a much greater cyber threat than renegade hacker groups like Anonymous. Play
GE CEO: Bringing jobs back to the U.S. 
Jeff Immelt says the U.S. is a cost competitive market for advanced manufacturing and that GE is bringing jobs back from Mexico. Play
Hamster wheel and wedgie-powered transit 
Red Bull Creation challenges hackers and engineers to invent new modes of transportation. Play