G8 finance chiefs see 'signs of stabilisation'

By AFP

July 15, 2010 Updated Jun 14, 2009 at 9:41 PM CDT

The G8 leading world economies see "signs of stabilisation" but the situation is still uncertain and "significant risks remain," G8 finance ministers said on Saturday after talks in Italy.

"There are signs of stabilisation in our economies, including a recovery of stock markets, a decline in interest rate spreads, improved business and consumer confidence, but the situation remains uncertain and significant risks remain to economic and financial stability," they said in a statement.

They also warned that even after economic growth resumes "unemployment may continue to increase, adding: "We must remain vigilant to ensure that consumer and investor confidence is fully restored and that growth is underpinned by stable financial markets and strong fundamentals."

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