September 25, 2009 / 6:18 PM / 9 years ago

G20 on financial crisis response: It worked

Spain's Prime Minister Jose Luis Zapatero, Italy's Prime Minister Silvio Berlusconi, Canada's Prime Minister Stephen Harper and Russia's President Dmitry Medvedev (clockwise from top L) stand for a group picture at the Pittsburgh G20 Summit in Pittsburgh, Pennsylvania September 25, 2009. REUTERS/Chris Wattie

PITTSBURGH (Reuters) - Leaders of the world’s biggest economies sounded very confident on Friday that they had won the financial crisis fight.

“It worked,” the Group of 20 declared in a two-word bullet point contained in a draft communique obtained by Reuters.

The G20 said that when it last met in April, the world economy was facing its greatest challenge “in our generation.” At that time, the G20 pledged to do everything necessary to ensure economic recovery, repair the financial system, and maintain the global flow of credit.

“Our forceful response helped stop the dangerous, sharp decline in global activity and stabilize financial markets,” the draft statement said, adding that industrial output was now rising in nearly all G20 countries, trade was starting to recover, and financial firms were raising capital.

But wary of celebrating too soon, the draft said there was much work to be done in reforming financial regulation and rebalancing global growth to ensure that the economy emerges on a more stable footing.

“A sense of normalcy should not lead to complacency,” it said.

A final communique is expected to be released when the G20 leaders wind up their two-day Pittsburgh summit later on Friday.

Reporting by Emily Kaiser, Editing by Frances Kerry

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