G-8 looking toward recovery

The leading industrialized nations began looking ahead Saturday to economic recovery as they considered how to unwind their massive stimulus policies.

In a communique after a two-day Group of 8 meeting, ministers from the United States, Japan, Germany, France, Britain, Italy, Canada and Russia, plus the European Union, said the “situation remains uncertain and significant risks remain to economic and financial stability” and emphasized their commitment to providing any more stimulus the economy might need.

But they also said they had asked the International Monetary Fund to assist with the process of outlining exit strategies from monetary and fiscal stimulus measures, such as tax cuts and lower interest rates, and said such plans were “essential to promote a sustainable recovery over the long term.”

The G-8 finance ministers’ meeting was held as several months of improving economic data fueled a rally on world stock markets.

“These early signs of improvement are encouraging, but the global economy is still operating well below potential and we still face acute challenges,” U.S. Treasury Secretary Timothy F. Geithner told reporters after the meeting, saying that it was too early to shift policy.