WASHINGTON (CNNMoney.com) – The severe decay in the global economy is easing but serious problems still loom, Treasury Secretary Tim Geithner said Friday.
"We are right to be somewhat encouraged, but we would be wrong to conclude that we are close to emerging from the darkness that descended on the globaleconomy early last fall," Geithner said in written comments.
Geithner met with finance chiefs from the G-7 countries who have convened in Washington to talk about their continued efforts to stimulate economies.
Since a high-profile G-20 meeting in London earlier this month, several countries - particularly Japan - have boosted their economic recovery programs, Geithner said.
In addition, Poland and Colombia have said they will join Mexico to apply for backstop financing from the International Monetary Fund, a global agency charged with helping countries facing economic distress.
Geithner hammered home the need for nations to provide stimulus globally and for IMF to support banks that lend to developing countries.
In a Thursday briefing preceding the G-7 meeting, a top Treasury official acknowledged that banks' troubled assets pose the biggest challenge to getting the markets moving again in the United States and globally.
The G-7 is made up of United States, United Kingdom, Japan, Germany, France, Canada and Italy.