G8 leaders say world economy faces significant risks

L'AQUILA, Italy, July 8 (Xinhua) -- Leaders from the Group of Eight (G8) rich countries said on Wednesday that the world economy still faces significant risks despite signs of stabilization.

Germany's Chancellor Angela Merkel is pictured at the opening of  a round table session at the G8 summit in L'Aquila July 8, 2009. (Xinhua/Reuters Photo)

"While there are signs of stabilization, including a recovery of stock markets, a decline in interest rate spreads, improved business and consumer confidence, the situation remains uncertain and significant risks remain to economic and financial stability," the leaders said in a declaration concluding their first-day meeting at a summit in the central Italian town of L'Aquila.

The financial crisis, which broke out last autumn, has dragged the global economy in a deep recession that the world has never seen since the World War II, prompting governments to take unprecedented and concerted action to ensure recovery and repair financial systems.