After a two day meeting in Lecce, Italy, the Group of Eight finance ministers issued a statement on Saturday, stating that the worst of the global financial crisis had passed, and that they are considering reversing the extraordinary policy measures they took to rescue the global economy as it shows signs of recovery. But, U.S. secretary Tim Geithner seems to disagree with that assessment, as he believes recovery has not yet arrived.
From The NYT: Despite growing signs that the world economy is stabilizing, it is still too early to begin scaling back government efforts to support the global financial system, [Secretary Geithner..said Saturday].
“Where we have seen improvements, they are the result of the unprecedented scope and intensity of policy actions to support demand and financial repair,” Mr. Geithner said in a statement. “These early signs of improvement are encouraging, but the global economy is still operating well below potential, and we still face acute challenges.”
New figures for industrial production released Friday in Europe were worse than expected and underscored the view that Europe is still lagging behind the United States and Asia in terms of recovery.