G7 indicates worst of recession may be over

April 25, 2009 – 10:14 pm – No Comment

The finance chiefs from the G7 said yesterday that the worst of the recession of the global economy may be over. They also pledged to make sure that the big financial firms stick around.

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,” U.S. Treasury Secretary Timothy Geithner said in a statement.

The news is good coming from G7 considering during their last gathering in February they said a severe downturn would go through most of 2009 and gave no mention of signs of stability.

The financial chiefs pledged to act “as needed to restore lending, provide liquidity support, inject capital into financial institutions, project savings and deposits and address impaired assets.”

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