Geithner upbeat on world economy

Timothy Geithner has reiterated his view that the global economy is now recovering, but that continuing government support is needed.

Speaking during a visit to Saudi Arabia, the US Treasury Secretary said there were now growing signs that "the global recession is receding".

He said "forceful and sustained" state support was needed until private investment could take over again.

Mr Geithner also restated the US's commitment to a strong dollar.

"Given the dollar's role in the international financial system and the significant impact of the US economy on global economic conditions, we fully recognise that the US has a special responsibility to play," he said.

With Goldman Sachs due to report a bumper second-quarter profit later, Mr Geithner also said there were growing signs of renewed confidence in the global banking sector.

Mr Geithner was speaking to Saudi officials a day after meeting UK Prime Minister Gordon Brown in London.

He is due to visit Abu Dhabi in the neighbouring United Arab Emirates on Wednesday.

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