After meeting in Washington last week, G7 finance ministers and central bankers released a statement saying that while the G7 nations are experiencing a deep economic downturn and financial stress, recent data suggest that the pace of decline in the G7 economies has slowed and some signs of stabilization are emerging.
For the first time since last fall, G7 financial leaders have painted a somewhat bright prospect, saying that economic activities should begin to recover later this year. Their words must have given a sense of relief to markets.
Nevertheless, as U.S. Treasury Secretary Timothy Geithner said after the meeting, both advanced and emerging nations "should not let their guard down but keep up their work to lift their economies out of recession." In fact, the G7 statement emphasized that downside risks persist.