November 7, 2009 Geithner: Growth process beginning Play video

(NECN/APTN: St. Andrews, Scotland) - Finance officials from rich and developing countries pledged on Saturday to maintain emergency support for their economies until recovery is assured and committed themselves to urgent action on tackling climate change.

Treasury Secretary Timothy Geithner said the "process of growth is now beginning" but warned that ending stimulus measures too early would be damaging to the economy.

"If we put on the brakes too early, we will weaken the economy and the financial system, unemployment will rise, more businesses will fail, budget deficits will rise, and the ultimate cost of the crisis - economic cost and fiscal cost - will be greater," Geithner said.

He said U.S. jobs figures out on Friday showing unemployment at a 26-year high of 10.2 percent showed that the economic environment was still tough.

The statement from Group of 20 finance ministers and central bankers at the end of their meeting in St. Andrews, Scotland said that economic and financial conditions have improved. But they stressed that recovery was uneven and remained dependent on policy support, and that high unemployment remained a major concern.

The statement smoothes over divisions among officials about how best to secure future global growth.

Host country Britain, still mired in recession, wants to continue international effort to support a still fledging recovery, while other G-20 nations, including the United States,

The G-20 officials -- representing around 90 percent of the world's wealth, 80 percent of world trade, and two-thirds of the world's population -- also committed to take action to tackle the threat of climate change and work towards "an ambitious outcome" at a major United Nations conference in Copenhagen next month.

Officials are considering a finance package to help poorer nations develop green industries and adapt to climate change.

The issue's priority on the agenda here reflects concern that nations will fail to agree in Copenhagen on December 6 on a successor to the Kyoto treaty limiting carbon emissions.

Material courtesy of APTN.