Caterpillar warns the global economic outlook is worse than it was in 2008 at the beginning of the crisis.
Doug Oberhelman, the company’s chief executive, said that the economy in Europe is expected to grow again in about five years and that for the first time in his 37-year career he doesn’t know what to predict concerning the global economy in the following year.
“I don’t think the situation is as grave as it was in 2008, but the uncertainty, the storm clouds are around things that none of us know about – like what will happen with the political situation in Europe,” Mr Oberhelman said.
He added that the future of big economies is not clear at all. The US economy shows no signs of recession, but neither of booming, China has bottomed and the question now is whether it will manage to snap back or will remain flat, while Brazil has definitely bottomed.
“As we look at all of the economic stimulus around the world, virtually all the governments were not as aggressive as they should have been and that’s why we’re feeling a soft spot now.”