WASHINGTON - TREASURY Secretary Timothy Geithner said on Wednesday that the 'first signs of growth' were already being seen in the United States, which has been in recession since December 2007.

'You have seen now the first signs of growth, positive growth, in this country and around the world,' he said in a media briefing ahead of the weekend's London meeting of the Group of 20 (G-20) finance ministers and central bank governors.

'We have come a very long way but I think we have to be realistic, we have a long way to go still,' Mr Geithner said.

The US economy contracted 1.0 per cent in the second quarter, after steeper declines in the previous three quarters. Most analysts expect the world's largest economy to post growth in the third quarter.

Mr Geithner said effective steps taken by the G-20 emerging and developed nations helped kickstart economic recovery following the global slump.

'The force of the powerful response we have put in place here and at the G-20... has been very successful in helping pulling the global economy back from the edge of the abyss,' he said.

The world economy has lurched toward recovery even as fears lingered in financial markets, brightening the outlook for the two-day G-20 meeting that is to open Friday in the British capital.

Australia surprised with a jump in growth in the second quarter, US manufacturing expanded, European economies continued their gradual emergence from the worst crisis in decades and company results showed an upturn.

The worst of the financial crisis is 'over for the time being,' Jean-Claude Juncker, head of the Eurogroup of finance ministers, told reporters as he arrived for a meeting in Brussels.

The G-20 finance ministers are expected to lay the groundwork for an economic summit of the group in the US city of Pittsburgh on Sept 24 - 25.

World leaders have been upbeat but equally cautious about declaring victory in the epic battle against recession and have warned that recovery will be slow as they focus on the looming dilemma of how to exit stimulus programmes. -- AFP