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The leaders of the Group of Eight Industrialized Nations say the world economy still faces significant risks despite signs of stabilization. The remarks were made on Wednesday at the G-8 summit in the central Italian city of L'Aquila. Meanwhile, they have also made some progress in efforts to fight against global warming.

From left to right: Japan's Prime Minister Taro Aso, U.S. President Barack Obama, France's President Nicolas Sarkozy, Canada's Prime Minister Stephen Harper, Italy's Prime Minister Silvio Berlusconi and Russia's President Dmitry Medvedev arrive for a group photograph at the G8 summit in L'Aquila, Italy on Wednesday. [Jason Reed/CCTV/Reuters]

The G8 leaders noted that while the recovery of stock markets and improved business and consumer confidence are good signs, the situation remains uncertain.

In face of lingering risks, the leaders pledged to take necessary steps, including further stimulus measures. The aim is to return the global economy to a strong, stable and sustainable growth path. They added that fiscal sustainability in the medium term should also be ensured.

The leaders also agreed on the need to prepare appropriate exit strategies for unwinding the extraordinary policy measures taken to respond to the crisis once the recovery is assured.