June 9, 2009

Report: G8 to present rosier picture

An optimistic assessment of the global economy is likely at the Group of Eight finance ministers' meeting, sources told Japan's Kyodo News Tuesday.

The two-day ministerial meeting convening this weekend in Lecce, Italy, is expected to say signs of improvement are emerging in many major economies because of the coordinated efforts of various governments in fighting the global recession, the sources said.

Observers will be closing analyzing the words or expressions on the global economy the G8 ministers will use in their joint statement.

The G8 does not want to mislead people by offering messages that are too optimistic, one of the meeting's sources told Kyodo. "But at the same time, we want to be clear that the situation has gotten better over the last several months.''

The source said the wording will not be set until the very last minute as this will be the most sensitive part.

Among the positive signs witnessed in many economies are moderation in the pace of the slowdown and recovery in the equities and commodity markets.

Japanese Finance Minister Kaoru Yosano has said he believes the world's second-largest economy likely is poised for a comeback toward the end of the year or by next spring after its deep plunge, the report said.

As a caution, the ministers also will note there are major challenges and downside risks still ahead.

The G8 countries are Britain, Canada, France, Germany, Italy, Japan, the United States and Russia.