BEIJING, June 11 (Reuters) - The world economy is showing tentative signs of picking up but is not out of the woods, Deutsche Bank Chairman Josef Ackermann said on Thursday.
Speaking in his capacity as chairman of the Institute of International Finance, Ackermann said financial institutions were acutely aware that they faced daunting challenges to restore confidence.
"The global economy is seeing encouraging signs of recovery, but in a modest way," Ackermann told a news conference during an IIF meeting in the Chinese capital.
The IIF, which represents international banks and other financial institutions, is forecasting global GDP growth in 2010 of just over 2 percent following a contraction this year of 3 percent.
William Rhodes, chairman of Citibank, said he was heartened by the determination shown by leaders of the Group of 20 developed and emerging economies to tackle various economic and financial challenges. But testing times still lay ahead.
"The global economic recovery is still in a fragile condition," Rhodes said, singling out the risk of a deterioration in the U.S. commercial property market.
He said it was particularly important for the G20 to secure a standstill, and then a rolling back, of protectionism in trade, investment and finance. (Reporting by Alan Wheatley; Editing by Ken Wills)