Toronto, July 22 - The Bank of Canada, the central bank of the most robust of the G8 economies, has said that global recovery from the financial crisis has begun.

In its economic outlook report released Tuesday, the bank said: 'There are now increasing signs that economic activity has begun to expand in many countries in response to monetary and fiscal policy stimulus and measures to stabilize the global financial system.

'However, the recovery is nascent. Effective and resolute policy implementation remains critical to sustained global growth.'

The bank said the Canadian economy has also begun recovery but warned that the rising Canadian dollar could be a hindrance for the resource-based economy.

'Stimulative monetary and fiscal policies, improved financial conditions, firmer commodity prices, and a rebound in business and consumer confidence are spurring domestic demand growth,' the bank said.

'However, the higher Canadian dollar, as well as ongoing restructuring in key industrial sectors, is significantly moderating the pace of overall growth,' it added.