There is a good chance that the United States and other leading economies will start growing again over the next few quarters, but significant risks to the outlook remain, U.S. Treasury Secretary Timothy Geithner said.
In my view there are still significant risks and challenges ahead, Geithner said when asked on Monday if he was concerned about the possibility of a double-dip recession.
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 U.S. economy and the world economy get back to recovery, get growing again, over the next few quarters.
He said the world's major economies were largely in agreement on the steps needed to boost economic activity and policies taken so far had helped provide a base for recovery.
I think we have remarkably strong consensus in place on core elements, Geithner said.
I think the policies have been very effective in arresting, in mitigating the forces of the storm and we're starting to see a better basis for recovery starting to be made in the U.S. He said there had been substantial progress in stabilizing the financial sector but it would take time to reach the end of the process and progress would be uneven.
Geithner was speaking after talks with UK finance minister Alistair Darling as part of a trip that will take in the Middle East and Paris.
Geithner and Darling said leaders of industrialized nations would discuss the measures they are taking when the G20 meets in Pittsburgh in September.
(Editing by Mike Peacock)