Geithner says end in sight
THERE is a strong chance America and other leading economies around the world will start growing again over the next few quarters, but big risks to the outlook remain, US treasury secretary Timothy Geithner said yesterday.
Geithner, speaking after talks in London with Prime Minister Gordon Brown and chancellor Alistair Darling, said support measures were starting to take effect and establish a “better basis for recovery.”
“In my view, there are still significant risks and challenges ahead,” Geithner said at a press conference with Darling when asked if he was concerned about the possibility of a double-dip recession.
He added: “We have a very powerful set of policies in place, coming on stream.
“I think there is a very good chance we will see the US economy and the world economy get back to recovery, get growing again, over the next few quarters.”
Darling reiterated his budget forecast for a return to growth in Britain by the end of the year, but was also cautious and eager to look forward to the next round of G20 meetings as a chance to agree on measures to consolidate recovery.
Darling added that countries around the world now needed to agree on ways to regulate financial institutions.
The chancellor said: “You’ll see that progress is being made but there’s a recognition that, because the banking system is global, the measures we need to deal with the various issues that have been raised also need to be dealt with in the global area.”