Leaders of the Group of Eight industrialised nations have wrapped their whirlwind summit in Ontario cottage country with a joint statement that included harsh criticism for Iran and North Korea, but a milder approach to deficit reduction.

On the divisive issue of what to do about the world worst recession since the 1930s, the official communiqué calls for "greater attention."

"As recovery takes hold," the statement reads, "we are at an important crossroads where nascent hope and optimism must be channeled into building more secure, equitable, inclusive and sustainable societies globally, where greater attention is spent to improving and effectively assessing the well-being of people."

"With that kind of language, they've got problems," CTV's Robert Fife said in an interview, pointing to the differences of opinion that have divided G8 leaders in the lead up to these discussions.

At the outset of the economic crisis in 2008, agreement seemed easy. As recovery has taken hold to varying degrees, divisions have emerged over whether to continue government stimulus spending, as the United States plans, or to slash deficits, as Europe and Japan have already begun.

During their opening day of talks Friday, leaders failed to resolve their ongoing dispute over the best strategy - spending or slashing - to keep the world economy on the right track.

In his press conference at the conclusion of the G8 summit on Saturday, Harper assured reporters there was indeed consensus that "we can't afford some sort of cataclysmic event" like the collapse of Lehman Brothers two years ago.

"We remain very engaged and very watchful of those situations," he said.

The eight nations officially represented at the discussions - United States, Japan, Germany, France, Britain, Italy, Canada and Russia - were less muted in their other declarations.

On the subject of Iran's nuclear program, for instance, the leaders expressed significant concern.

"We are profoundly concerned by Iran's continued lack of transparency regarding its nuclear activities and its stated intention to continue and expand enriching uranium," the G-8 communiqué states, stopping short of outright condemnation of Tehran.

"We urge the Government of Iran to respect the rule of law and freedom of expression."

And on the March sinking of the South Korean warship Cheonan, the leaders cited an independent report that found that the ship had been sunk by a North Korean torpedo. The leaders said: "We condemn, in this context, the attack which led to the sinking of the Cheonan."

In his remarks, Harper told reporters the message from G8 leaders is clear.

"The governments of Iran and North Korea have chosen to acquire weapons to threaten their neighbours," Harper told reporters gathered at the exclusive Deerhurst Resort in Huntsville Saturday. "The world must see to it that what they spend on these weapons will be not be the only cost that they incur."

Other notable points in the 15-page final communiqué:

• The commitment of approximately $5 billion for maternal health that falls short of expectations for Harper's signature "Muskoka Initiative"
• Reaffirmation of a five-year exit strategy from Afghanistan, as well as continued support for the country's development
• Praise for Israel's announcement of a new policy on Gaza, tempered by the statement "current arrangements are not sustainable and must be changed"
• Condemnation of the illicit exploitation and trade of natural resources in the Democratic Republic of the Congo
• Continued support for development across Africa, with special focus on "the most vulnerable states"
• A call for Myanmar to hold free and fair elections with "full and inclusive democratic participation"
• Nothing new on the environment, despite the declaration "climate change remains top of mind"
• Support for the Muskoka Accountability Report (to be released Sunday) that will measure action against targets. "It shows that important progress has been made in many areas, but more needs to be done"

After concluding their talks in Muskoka, leaders boarded helicopters for the short flight south to Toronto where the so-called Group of 20 nations are convening.

Following an official welcoming reception, leaders will participate in a working dinner focused on the state of the world economy. Discussions will end Sunday with the release of another joint communiqué.

The rapid rise in influence of the two-year-old G20, which includes emerging economic powerhouses Brazil, India and China, has fuelled questions of the continued relevance of the smaller G8.

When asked to explain the necessity of convening both groups, Harper said the 20-year-old G8 forum had been "reshaped and reenergized".

"I think all the leaders at this point would be pretty strong in their view, based on the discussion we had last night, that the G8 is a pretty essential organization going forward," Harper said, explaining that the smaller G8 is better able to achieve consensus during crises.

"But our co-ordination through the G20, the United Nations and other international institutions remains obviously equally vital."

Prepared with reports from CTV's Robert Fife and The Canadian Press