“We’re actually looking for an opportunity to add more duration to our portfolios,” Bob Michele, JPMorgan Asset Management CIO and global head of fixed income, says during an interview with Lisa Abramowicz on “Bloomberg The Open.”

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As the coronavirus pandemic continues to ravage economies around the world, leading financial institutions are predicting a recession. JPMorgan’s chief economist, Bruce Kasman, has recently stated that a global recession is “inevitable” by the end of the year. Moreover, Michele, the global head of economics and strategy for the bank, has been warning clients of an impending downturn since January, when the outbreak first started to have a severe impact on China’s economy.

Michele has been repeating her concerns over the past few months as the virus has spread to other countries, causing a global health crisis and worldwide economic turmoil. According to her, the COVID-19 outbreak has created a “perfect storm” of factors that will lead to an economic recession.

The first factor is a slowdown in global trade and commerce. This is due to restrictions on travel and trade since numerous countries have closed their borders, quarantining their citizens and prohibiting imports and exports. The decline in demand has particularly impacted the international trade of goods, including automobiles, consumer electronics, and air travel.

The second factor is the weakness of the global oil market. Countries that depend on oil exports, such as Russia and the Middle Eastern nations, face a particularly difficult situation. Despite continued efforts by OPEC and its allies, the prices of crude oil and other fuel products remain low.

The third factor is the impact on small businesses and the workforce. While some larger, more established companies are able to weather the storm of the pandemic, smaller businesses are particularly vulnerable to collapse. The shutting down of businesses and job losses have thus led to a decrease in consumer spending and confidence, further damaging economic growth.

Finally, a fourth factor is the inability of governments to provide fiscal stimulus. Economic experts are concerned that governments will run out of money earmarked for fiscal stimulus should the pandemic continue for an extended time. Countries could be facing the uncomfortable situation of not being able to support struggling citizens after their reserves have run dry.

The potential for a global recession has increased as governments take on new deficits and central banks buy trillions of dollars of bonds. While this has moderated the short-term downside risk, the long-term outlook remains bleak.

In conclusion, the COVID-19 pandemic has caused widespread economic disruption, leading to a recession that is likely inevitable by the end of the year. Financial experts, including Michele from JPMorgan, have indicated that this is a massive concern. Hopefully, with common sense solutions, economies will return to growth before too long.