G20 to pledge to keep stimulus measures going

PITTSBURGH, PENNSYLVANIA: Group of 20 leaders will agree that economic stimulus measures following the financial crisis should be maintained "until a durable recovery is secured," a draft text said on Friday.

"We'll avoid any premature withdrawal of stimulus," a G20 source said, quoting from the draft of a text expected to be adopted at the summit of developed and developing nations in Pittsburgh.

Leaders will issue their final communique aimed at stabilising the world economy after last year's meltdown later on Friday.

US Treasury Secretary Timothy Geithner had earlier told reporters that the world's largest economy is not yet ready to start winding down economic stimulus.

Geithner said Thursday the US wanted to leave "programs in place until we are very confident we have a financial system that can provide the credit recovery needs."

Countries including Japan, Germany and France have emerged from recession and US Federal Reserve chairman Ben Bernanke said earlier this month that the US recession is "very likely over".



But growth has partly been dependent on stimulus and there are long-term problems like large government deficits and the prospect of unemployment continuing to rise in many countries.

The summit had been widely expected to discuss when and how to begin scaling back the multi-trillion dollar stimulus packages, cheered cheered on by China, which fears US deficits will destabilize the dollar.