London - Finance ministers and central bankers from the world's big economic powers moved Saturday to paper over sharp differences in their efforts to combat the global recession with a pledge to return the international economy to growth.

"We are prepared to take whatever action is necessary." said British Chancellor of the Chequer Alistair Darling, who chaired the meeting of Group of 20's (G20) financial chiefs.

London - Finance ministers and central bankers from the world's big economic powers moved Saturday to paper over sharp differences in their efforts to combat the global recession.

The Group of 20's (G20) top financial officials said they were committed "to deliver the scale of sustained effort necessary to restore growth" and to set the stricken global economy back on the path to recovery.

London  - German Chancellor Angela Merkel German expressed confidence Saturday that the leaders of the world biggest economic powers would be able to bridge their differences and reach agreement at their summit next month on steps to combat the global recession.

Speaking at a joint press conference with British Prime Minister Gordon Brown, Merkel said she was "very optimistic that we can come up with good results" at the London summit of the Group of 20 (G20) states.

Washington  - The United States sought to reassure other countries Friday that its long-term economic prospects remained strong amid grumblings from China over its US holdings and increasing divisions with Europe over how to manage the global economic crisis.

President Barack Obama, who held a key meeting with his economic advisors at the White House, said the US potential for growth is "undiminished" and the world's largest economy would recover in the coming years.

Washington - The world's banks need deeper government intervention and better cooperation to halt a deepening global recession and avoid a collapse of major financial institutions, the global financial lobby said Friday.

The International Institute of Finance (IIF) said the world's economy will shrink by 1.8 per cent this year - down from its January prediction of a 1.1-per-cent contraction that would mark the first global decline since World War II.

Washington - The world's banks need more government intervention and better cooperation to halt a deepening recession and shore up struggling financial institutions, the global financial lobby said Friday.

The International Institute of Finance (IIF) said the world's economy will shrink by 1.8 per cent this year - down from its January prediction of a 1.1 per cent contraction that would mark the first since World War II.