The US Treasury Secretary, Timothy Geithner, on Friday said there have been some encouraging signs coming out of the current global economic crisis, but it is too early to say that the risks have receded.
Talking to foreign correspondents after his meeting with the Finance Minister of G-7 countries, the Treasury Secretary said: "Without underestimating the very considerable challenges still ahead, there are signs that the pace of deterioration in economic activity and in trade flows has eased."
Later Geithner had a similar meeting with the G-20 countries. The Planning Commission Deputy Chairman, Montek Singh Ahluwalia, represented India at G-20 ministerial level meeting held on sidelines of the Spring meeting of the World Bank and International Monetary Fund.
Geithner said some measures of spending and output activity in the US and other economies may have begun to stabilise. Financial conditions in some markets have shown modest improvement, he said.
"These are encouraging signs but it is too early to say the risks have receded, and it's too early to conclude that we're beginning to emerge from this remarkably challenging set of pressures still working their way through the financial system and the global economy," Geithner concluded.
Responding to a question, he said: "Where there has been action and programs initiated, you've seen risk premiums start to recede, credit spreads start to come down. That's very encouraging. We need to reinforce that progress."
He said it is very important that the governments of the G-20 and governments around the world continue to provide the level of support for demand and the commitment to support the restoration of credit flows that is necessary to help us end the recession and lay a foundation for recovery.
"It is very important that we deliver on these commitments to mobilise additional resources for the IMF and the World Bank and the regional development banks and important for them to deploy those resources in ways that are directly relevant to and particularly helpful to address the challenges in emerging and developing countries," he said.
