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G20 meets as OECD says return to growth -

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ASHLEY HALL: Finance ministers from the Group of Twenty nations will meet in London later today for
two days of talks.

At the top of their agenda will be the trillions of dollars in emergency stimulus that saved the
world's economies from going under.

As Peter Ryan just mentioned, some are pushing for an early end to the measures but the
Organisation for Economic Co-operation and Development has warned against that. The OECD has
upgraded its forecasts for major economies and expects a return to growth in the third quarter. But
in line with other global forecasters, it says any recovery will be weak.

Here's our finance reporter Sue Lannin.

SUE LANNIN: The debate over the green shoots of recovery continues but the chief economist from the
Organisation for Economic Co-operation and Development Jorgen Elmeskov promised to use the term
only once at a briefing for journalists.

JORGEN ELMESKOV: This briefing takes place at a time when we've had a run of good news. A recovery
looks to be in hand for the OECD economy at large but it is important not to get carried away.

The green shoots seem likely to grow further in the near term but they will still need careful
nurturing by policy if they are to become strong, self-sustaining plants.

SUE LANNIN: The OECD says the world is coming out of recession faster than previously thought. It
believes that most of the world's major economies including the US will start growing in the third
quarter of 2009.

Jorgen Elmeskov says the Group of Seven industrialised nations will shrink 3.7 per cent this year,
a less severe contraction than he predicted in June.

JORGEN ELMESKOV: The upshot is that following the much improved outcomes in the second quarter the
estimates for the third and fourth quarter are mostly in the positive domain.

SUE LANNIN: Federal Treasurer Wayne Swan is in London for the G20 meeting of finance ministers.
They will discuss whether to pull back stimulus measures.

Mr Swan says it's up to each government to decide the timing of any withdrawal but stimulus is
still needed in Australia.

WAYNE SWAN: When you're looking at a growth rate of 0.6 that is substantially below trend. We are
still looking at unemployment rising domestically in Australia. We see weak domestic business
investment. And we've had a huge shock to our national income.

SUE LANNIN: Professor of finance at the University of New South Wales Fariborz Moshirian says each
economy is different but coordination is essential.

FARIBORZ MOSHIRIAN: We are hearing from the G20 summit, we are hearing from the OECD and we are
hearing in effect from the IMF as well simply because the global economy requires coordination and
we know that the recovery is still fairly fragile.

We are talking about toxic assets in the US banking system, in the European banking system. We're
talking about a major challenge we are facing in Europe where banks are still not lending to their
customers. And so it would be quite premature to contemplate any withdrawal in 2009 or even part of

SUE LANNIN: There is a big wish list for the G20 meeting including a call from charity Oxfam for a
tax on global financial transactions to help the poor.

US Treasury Secretary Timothy Geithner is expected to push a plan to make banks raise their

The leaders of Britain, France and Germany want new rules to clamp down on bonuses for bank

British Prime Minister Gordon Brown says there is shock at the return of what the leaders call
reprehensible practices.

GORDON BROWN: Some people get bonuses for not really doing anything that is of long term value.
Some people are getting bonuses that even when their bank doesn't do well, they still get the

SUE LANNIN: All three leaders say the global financial crisis is not over yet.

ASHLEY HALL: Sue Lannin.