The International Monetary Fund (IMF) on Monday warned that 2020 could witness a severe recession “at least as bad during the global financial crisis or worse,’’ even as recovery would be expected in 2021.
IMF Managing Director Kristalina Georgieva, made the comments after a phone call of G20 Finance Ministers and central bank governors on Monday.
“The economic impact is and will be severe, but the faster the virus stops, the quicker and stronger the recovery will be.
Advanced economies are generally in a better position to respond to the crisis,’’ she said in a statement.
Georgieva, however, warned that many emerging markets and low-income countries face “significant challenges,” noting there are already capital outflows from poorer nations.
The IMF said it will step up aid to countries in need, while calling on central banks to create additional swap lines, to prevent a liquidity crisis in emerging markets and poorer nations.
Many of the world’s wealthiest nations have already established swap lines, including with the U.S. Federal Reserve.
Meanwhile leading auto manufacturing group Fiat Chrysler Automobiles (FCA) said it would convert one of its factories to start producing face masks, which would be donated to health workers battling with the novel coronavirus outbreak.
Chief Executive Mike Manley, said in a letter to employees that the company would this week start the conversion of one of its plants to make face masks.
“We are working through the protocols to start production in the coming weeks and ultimately produce over a million face masks per month to donate to first responders and health care providers.’’
Company sources said the masks would be made in an Asian plant.
Due to the novel Coronavirus crisis, the Italo-American car manufacturer has stopped production in both Europe and North America.
In Italy, the country that has been worst hit by the outbreak, FCA and Ferrari are helping Italian medical company Siare Engineering boost its production of ventilators.
Manley said: “Being able to direct our resources to supporting those most in need makes me proud to be part of this company.’’