Finance ministers and central bank governors of the Group of 20 (G20) nations believed that there are signs of "modest recovery" in U.S. and EU economies despite many challenges.
Even though the risk of recession remains present, especially in Europe, the outlook right now is more promising than it has been, said top officials at a meeting of G20 finance ministers and central bank governors, which ended late Sunday in the Mexican capital.
They were upbeat that countries in the debt-troubled euro zone have taken a "decisive action" and already started to implement much needed financial tools such as fiscal adjustments and macroeconomic restructuring in order to put an end to the crisis.
"Measures have been taken which have allowed for a modest recovery," said Mexican Finance Minister Jose Antonio Meade.
He said that despite the heavy impact from the United States and the European debt crisis, economies of developing countries were still performing better than industrialized countries.
G20 officials agreed that the principal challenge ahead is to carry out structural reforms in order to stimulate investment, economic growth and the creation of jobs, and that Europe is doing just that.
"It has been a very constructive atmosphere," said Margrethe Vestager, economy and interior minister of Denmark, which holds the rotating EU presidency.
"Europe is doing its homework and actions have been taken. Greece is now implementing a lot of decisions that have been taken," said Vestager.
"There is a broad recognition to bolster global firewalls and there is that sense of urgency that it needs to be done sooner rather than later."
Structural reforms are implemented within a well regulated framework which at the same time provides a level playing field for competition, she added.
Olli Rehn, the EU's economic and monetary affairs commissioner, said other signs of positive progress include that Ireland is back to positive growth while Portugal is on track to implement the fiscal adjustment and structural reform required.
"We have taken decisive action which is already reflected in several signs of stabilization. Over the last 48 hours I sensed a much more positive atmosphere," said Rehn./.