Business / Economy

Caterpillar: China growth may recover this year

(China Daily) Updated: 2012-08-31 10:27

Caterpillar Inc, the world's largest maker of construction and mining machines, said China's economic growth will probably recover this year as the government continues to stimulate growth.

China cutting interest rates would help boost growth and "our thesis is that that will continue and we will probably see China recover later this year or early next", said Stuart Levenick, group president for customer and dealer support of the Peoria, Illinois-based company, on Thursday.

China's economy is growing at the slowest pace in three years after the government put in place measures to cap inflation and the eurozone debt crisis crimped global confidence. Caterpillar, with 25 percent of sales in Asia, has cut production at its main Chinese excavator factory, the company said last week

"We have confidence in long-term commodity demand," Levenick said, based on developing economies becoming wealthier and urbanization driving demand for resources.

China Daily-Agencies


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