LONDON – The G20 London summit will unlikely spark an immediate global economic recovery, but a trillion-dollar funding boost for international lending institutions should help, analysts said.

The G20 meet, called to combat the burgeoning financial crisis and attended by US President Barack Obama, agreed a huge cash injection for the IMF and World Bank to help battle the spreading global recession.

But leaders from the Group of 20 industrialised and developing nations stopped short of any coordinated round of public spending.

"The summit has failed to break any new ground on a global fiscal stimulus," said Capital Economics analyst Julian Jessop.

"But there has at least been agreement on generous increases in funding for the IMF and additional trade credits."

Howard Wheeldon, senior strategist at BGC Brokers, lamented that the G20 package would not scoop the global economy out of recession – but could help prevent a deeper depression.

The G20 closing statement was "nothing that really softens the blow of recession – but perhaps some things that stops it moving to depression," he said.

The Group of 20 industrialised and developing nations will provide more USD 1 trillion (EUR 744 billion) of new resources for the International Monetary Fund and other global finance bodies.

There will be some USD 500 billion of funding, USD 250 billion in special drawing rights and USD 250 billion in trade credit.

G20 leaders want the extra cash to boost liquidity and help embattled countries – particularly in crisis-hit eastern Europe – through the global recession.

The new G20 measures unveiled Thursday will see secretive tax havens named and shamed, new rules on corporate pay, major reforms to the IMF and World Bank, a new push to pass free trade rules and the sale of huge gold reserves to help poor countries.

"G20 leaders have pushed forward on most key areas, promising to do whatever is necessary to restore global growth," said IHS Global Insight economist Jan Rudolph.

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