Washington: There are signs that the global downturn in economic activity is easing, US Treasury secretary Timothy Geithner said.
“Without underestimating the challenges we still face, there are signs that the pace of deterioration in economic activity and trade flows has eased,” Geithner said in a statement on Friday at the end of a group of seven (G-7) meeting.
“Some measures of spending in the US and other economies may have begun to stabilize. Financial conditions in some markets have shown modest improvement and there are signs that the US housing markets are beginning to stabilize.”
At the same time, Geithner cautioned against any simple optimism that the worst global slump since the 1930s would be over quickly.
“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 (in September),” he said.
Geithner was speaking after a gathering of the G-7 - Britain, Canada, France, Germany, Italy, Japan and the United States - and before going into a meeting of the group of 20, which includes the G-7 and the largest developing countries.
The G-7 meeting, held traditionally ahead of the IMF and World Bank’s meetings over the weekend, reviewed progress on measures agreed at the G-20 London summit earlier this month to tackle the crisis.