UPDATE 2-G8 to discuss eventual exit strategy-German official
BERLIN, June 11 (Reuters) - There are signs the global economy is starting to stabilise and G8 ministers will discuss this weekend eventual exit strategies from crisis policies, German Deputy Finance Minister Joerg Asmussen said on Thursday.
Separately, a G8 source said the International Monetary Fund has raised its global growth estimates for 2010 to 2.4 percent from 1.9 percent in April because of stimulus measures taken in recent months.
The source had seen the latest figures, prepared by the IMF for the G8 ministers' meeting in Lecce, Italy this weekend.
Asmussen said leading economic indicators such as purchasing manager indices and incoming orders pointed to stabilisation.
"You can say that there are first signs of a stabilisation in the world economy," he told reporters in Berlin. "But the timing and speed of a sustained recovery remain uncertain.
"In Europe, compared to the United States, a delayed turning point is to be expected."
Ministers in Italy would discuss "credible exit strategies" from the crisis policy measures which governments had taken, Asmussen said.
"(This is) meaning that as soon as the economy has found its footing again, expansive impulses must be rolled back. And that also concerns monetary and fiscal policies," he said.
Asmussen added that the G8 ministers would not specifically address monetary policy issues because the heads of their countries' central banks would not be present. The G8 finance ministers would not discuss foreign exchange issues, he said.
However, a French official said France was watching foreign exchange markets closely because of concern over the risk of excessive volatility.
"What is damaging for the economy is the volatility of the currency markets and that is why we are keeping an eye on that market," the official told Reuters in response to a question about recent foreign exchange market moves.
Asmussen saw an improvement in financial market conditions.
"Conditions on financial markets have improved but have not yet normalised," he said. "We have rising stock and commodity prices which point to a slight increase in market participants' risk appetite."
BETTER IMF FORECAST
The G8 source, speaking on condition of anonymity, told Reuters the global economic recovery would be gradual and that the risks to the outlook were on the downside.
"The (IMF) forecast for global growth in 2010 has moved to 2.4 percent from 1.9 percent in April," the source said on Thursday. "The estimate has improved thanks to the impact of stimulus measures taken in recent months."
The source had access to an IMF briefing note for the G8 finance ministers' meeting which contained the figures.
The forecast for the global economy in 2009 was unchanged, with the IMF still expecting a contraction of 1.3 percent, as outlined in its World Economic Outlook published in April.
BERLIN, June 11 (Reuters) - There are signs the global economy is starting to stabilise and G8 ministers will discuss this weekend eventual exit strategies from crisis policies, German Deputy Finance Minister Joerg Asmussen said on Thursday.
Separately, a G8 source said the International Monetary Fund has raised its global growth estimates for 2010 to 2.4 percent from 1.9 percent in April because of stimulus measures taken in recent months.
The source had seen the latest figures, prepared by the IMF for the G8 ministers' meeting in Lecce, Italy this weekend.
Asmussen said leading economic indicators such as purchasing manager indices and incoming orders pointed to stabilisation.
"You can say that there are first signs of a stabilisation in the world economy," he told reporters in Berlin. "But the timing and speed of a sustained recovery remain uncertain.
"In Europe, compared to the United States, a delayed turning point is to be expected."
Ministers in Italy would discuss "credible exit strategies" from the crisis policy measures which governments had taken, Asmussen said.
"(This is) meaning that as soon as the economy has found its footing again, expansive impulses must be rolled back. And that also concerns monetary and fiscal policies," he said.
Asmussen added that the G8 ministers would not specifically address monetary policy issues because the heads of their countries' central banks would not be present. The G8 finance ministers would not discuss foreign exchange issues, he said.
However, a French official said France was watching foreign exchange markets closely because of concern over the risk of excessive volatility.
"What is damaging for the economy is the volatility of the currency markets and that is why we are keeping an eye on that market," the official told Reuters in response to a question about recent foreign exchange market moves.
Asmussen saw an improvement in financial market conditions.
"Conditions on financial markets have improved but have not yet normalised," he said. "We have rising stock and commodity prices which point to a slight increase in market participants' risk appetite."
BETTER IMF FORECAST
The G8 source, speaking on condition of anonymity, told Reuters the global economic recovery would be gradual and that the risks to the outlook were on the downside.
"The (IMF) forecast for global growth in 2010 has moved to 2.4 percent from 1.9 percent in April," the source said on Thursday. "The estimate has improved thanks to the impact of stimulus measures taken in recent months."
The source had access to an IMF briefing note for the G8 finance ministers' meeting which contained the figures.
The forecast for the global economy in 2009 was unchanged, with the IMF still expecting a contraction of 1.3 percent, as outlined in its World Economic Outlook published in April.