Geithner upbeat on recovery

BEIJING, May 26 (UPI) -- The current world economic recovery is in a much stronger position than it had been in recent months, U.S. Treasury Secretary Timothy Geithner said.

Speaking to reporters Tuesday in Beijing at the end of the two-day China-U.S. Strategic and Economic Dialogues, Geithner pointed to "very encouraging signs" of stronger growth, both in China and the United States, that is "more broad-based," the U.S. State Department said on its Web site.

Geithner said the U.S. recovery is led by the private sector, while in China it is led by domestic demand.

"And I think that's very important to point out because, again, we come to this stage in recovery with a world economy that is in a much stronger position than it was three months ago, six months ago, nine months ago," Geithner said.

The secretary also commented on the financial reforms and financial efforts in Europe to resolve its current crisis, saying both China and the United States have a strong interest in them.

"And of course, as I like to say all the time, it's important to understand that Europe has the capacity to manage these challenges. And we're confident they will," he said.