Amid omicron scare, OECD cuts global economic outlook
3 years ago

Amid omicron scare, OECD cuts global economic outlook

The Hindu  

The global recovery has lost momentum and is becoming increasingly uneven, the Organization for Economic Cooperation and Development said in its latest economic outlook on November 1, adding that the emergence of the omicron variant could threaten recovery. "We are concerned that the new variant of the virus, the omicron strain, is further adding to the already high levels of uncertainty and risks, and that could be a threat to the recovery," OECD Chief Economist Laurence Boone told reporters. Omicron risks The emergence of the omicron variant coincides with global economic recovery losing some of its steam thanks to global supply chain disruptions, soaring consumer prices and rising cases of COVID-19, especially in Europe. Analysts at Oxford Economics said earlier this week if omicron became the dominant strain, it could shave off more than 2 percentage points from global output growth next year.

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History of this topic

World economy to accelerate in 2025, but recovery threatened by higher tariffs, OECD says
2 weeks, 6 days ago

World economy to accelerate in 2025, but recovery threatened by higher tariffs, OECD says

Live Mint  

The global economy is set to grow at slightly a faster pace next year as inflation continues to cool, but could falter if tariffs rise and governments fail to narrow wide budget deficits, the Organization for Economic Cooperation and Development said Wednesday. “Growth continues to be resilient," said Alvaro Pereira, the OECD’s chief economist, in an interview with The Wall …

OECD raises 2023 global GDP growth forecast to 2.6%
1 year, 9 months ago

OECD raises 2023 global GDP growth forecast to 2.6%

The Hindu  

The Organisation for Economic Co-operation and Development raised its global economic growth forecast on Friday as inflation eases and China emerges from COVID restrictions, but warned of vulnerabilities as seen in the US bank sector turmoil. But it remains under the 3.2% expansion seen in 2022, the Paris-based OECD said in its updated economic outlook titled “A Fragile Recovery”. 🔴 …

Living with covid proving tough for a gridlocked world economy
2 years, 11 months ago

Living with covid proving tough for a gridlocked world economy

Live Mint  

The surging omicron variant is complicating the recovery for a world economy that continues to be wracked by supply chain chaos, worker absenteeism and faltering assembly lines. Analysis by Nomura of omicron’s impact on nations hit early like the U.K. and Canada shows shorter duration waves, faster descents from peaks and lower death rates than the delta variant. “While it …

China is risking a big hit to the economy and supply chains with zero-Omicron approach
2 years, 11 months ago

China is risking a big hit to the economy and supply chains with zero-Omicron approach

CNN  

Hong Kong CNN Business — The Chinese government’s unwavering insistence on stamping out any trace of the coronavirus is facing its biggest test yet as authorities grapple with Omicron’s quickening spread. Those revisions come “in light of the latest Covid developments — in particular, the likely higher average level of restriction to contain the more infectious Omicron variant,” Goldman analysts …

Omicron worry: India's economic recovery could face disruption again, says UN
2 years, 11 months ago

Omicron worry: India's economic recovery could face disruption again, says UN

India Today  

The deadly wave of Delta variant-driven Covid infection claimed 240,000 lives between April and June last year and disrupted the economic recovery. “Similar episodes could take place in the near term,” the United Nation’s Economic forecast for India has stated, amid a rising number of Omicron infections in the country. However, India’s economic recovery is on a solid path, amid …

Omicron may be headed for a rapid drop in U.S. and Britain
2 years, 11 months ago

Omicron may be headed for a rapid drop in U.S. and Britain

LA Times  

Scientists are seeing signals that the alarming Omicron wave may have peaked in Britain and is about to do the same in the U.S., at which point cases may start dropping off dramatically. Shabir Mahdi, dean of health sciences at South Africa’s University of Witwatersrand, said European countries that impose lockdowns won’t necessarily come through the Omicron wave with fewer …

Omicron may press pause on interest rate hike
2 years, 11 months ago

Omicron may press pause on interest rate hike

Live Mint  

MUMBAI : India’s central bank may defer policy normalization plans to the next fiscal to avert a potential hit on the economy as the spread of the Omicron variant of coronavirus has already led some states to reimpose restrictions on economic activity, economists said. “With the recent surge in covid-19 cases and growing restrictions heightening uncertainty, it is increasingly unlikely …

Omicron spoiling US holiday economic comeback
2 years, 11 months ago

Omicron spoiling US holiday economic comeback

Raw Story  

Holiday events have been scrapped in droves, thousands of flights canceled, cruises are now off limits: the Omicron variant has wreaked havoc in the United States, and the new year could see more issues exacerbating the worker shortage and the recent wave of price increases. "We are starting to see some initial signs that Omicron is having an impact on …

Economy regaining strength but Omicron haunts the future, says RBI
2 years, 11 months ago

Economy regaining strength but Omicron haunts the future, says RBI

India TV News  

Highlights Omicron variant of coronavirus remains the major challenge to economy, said RBI. Though the economy has steadily gained momentum and remained resilient since the second quarter of the current fiscal, the Omicron variant of coronavirus remains the major challenge along with rising inflation pressures, says the Reserve Bank in its second financial stability report. In the foreword to the …

Omicron update: Global cases top 1 million, as WHO urges caution
2 years, 11 months ago

Omicron update: Global cases top 1 million, as WHO urges caution

Live Mint  

Just as the World Health Organization warned that Omicron still poses “very high” risk and could overwhelm healthcare systems across the world, the highly transmissible omicron variant has taken worldwide Covid-19 cases above 1 million for a second straight day This comes two years after reports of a mysterious pneumonia first emerged in Wuhan, the pandemic shows no signs of …

MPC Minutes: Omicron Variant Casts Shadow On Services That Were Showing Signs of Recovery, Says RBI Governor
3 years ago

MPC Minutes: Omicron Variant Casts Shadow On Services That Were Showing Signs of Recovery, Says RBI Governor

ABP News  

New Delhi: Reserve Bank of India Governor Shaktikanta Das said that Indian economy is facing severe headwinds emanating from global factors, according to the minutes of monetary policy meeting released on Wednesday. Global trade, after rebounding strongly in the first half of 2021, is losing momentum on the back of stretched supply chain and logistics issues, shortages of key components …

Omicron casts a new shadow over economy’s pandemic recovery
3 years ago

Omicron casts a new shadow over economy’s pandemic recovery

Associated Press  

Just as Americans and Europeans were eagerly awaiting their most normal holiday season in a couple of years, the omicron variant has unleashed a fresh round of fear and uncertainty — for travelers, shoppers, party-goers and their economies as a whole. “We don’t know whether this is good or bad for growth or inflation in the medium term,’’ said Megan …

Government's economic update on the way in the face of Omicron COVID variant
3 years ago

Government's economic update on the way in the face of Omicron COVID variant

ABC  

The federal government will use today's mid-year budget update to lay out the beginnings of a re-election pitch centred on economic recovery, but it comes with warnings the Omicron variant could wreak havoc on those plans. Key points: The government is handing down its update on how Australia's financial position is tracking But it will rely on the COVID situation …

Two big threats are looming large across the globe: Inflation, and the Omicron variant of COVID-19
3 years ago

Two big threats are looming large across the globe: Inflation, and the Omicron variant of COVID-19

ABC  

Many people seem to have a natural desire to "clean the slate" before Christmas. Right now, apart from people's daily life concerns, two overarching threats are looming large across the globe: inflation, and the Omicron variant of COVID-19. "The sustained period of cost pressures over the last three quarters, at a net 39 per cent, is the highest average level …

Omicron Scare: Impact Of New Variant To Be Less Severe On India’s Economy, Says FinMin Report
3 years ago

Omicron Scare: Impact Of New Variant To Be Less Severe On India’s Economy, Says FinMin Report

ABP News  

New Delhi: As the Omicron variant of the deadly Covid-19 virus has raised concerns globally, the latest study pointed out that India will be among only a few economies in the world to rebound strongly from Covid-induced economic contraction of 2020-21. The finance ministry report assuaged concerns saying that the Omicron variant's impact on the Indian economy will be less …

IMF chief warns Omicron COVID-19 variant could slow global growth
3 years ago

IMF chief warns Omicron COVID-19 variant could slow global growth

Firstpost  

The IMF’s most-recent forecasts raised concerns that global supply chain issues and uneven distribution of vaccines were slowing the rebound, and causing some countries to be left behind Washington: The new Omicron variant of COVID-19 could slow the global economic recovery, just as the Delta strain did, International Monetary Fund chief Kristalina Georgieva said Friday. “A new variant that may …

Explained: How omicron is affecting financial markets
3 years ago

Explained: How omicron is affecting financial markets

The Hindu  

The emergence of omicron has kept global markets on tenterhooks, struggling to process the little, often contradictory information on the new COVID-19 variant. "While it is likely that omicron is more transmissible, early reports suggest it may also be less deadly — which would fit into the pattern of virus evolution observed historically," JP Morgan strategists Marko Kolanovic and Bram …

Here’s how Omicron could make the supply chain mess worse
3 years ago

Here’s how Omicron could make the supply chain mess worse

CNN  

Washington CNN Business — Commerce Secretary Gina Raimondo is concerned the Omicron coronavirus variant will exacerbate pressure on the already stressed-out global supply chain. We’ve had problems in places where people work close.” Outbreaks from the Delta variant worsened supply chain turmoil earlier this year, causing computer chip and other factories to shut down, especially in Asia. “All the different …

Why Omicron could hurt India's recovery
3 years ago

Why Omicron could hurt India's recovery

India Today  

The latest variant of the Covid-19 virus—named ‘Omicron’—has plunged the global economy into uncertainty yet again, with fears about its transmissibility leading to new travel restrictions and talk of potential lockdowns. As investors assess the impact of the new variant on various economies, S&P Global, in a report, said that policies in the Asia-Pacific region have left regional economies on …

Omicron risks new inflation headache for world’s central bankers
3 years ago

Omicron risks new inflation headache for world’s central bankers

Live Mint  

The advent of the omicron variant of the coronavirus risks posing new challenges for central bankers by threatening economic growth while adding to inflation pressures. “Delay means weaker growth in the short term, but stronger growth later.” Supply chains Complicating the decision for policy makers is the risk that omicron leads to fresh curbs in manufacturing hubs such as China, …

Omicron and the Fed might finally kill this bull market
3 years ago

Omicron and the Fed might finally kill this bull market

CNN  

New York CNN Business — So much for a year-end Santa Claus rally? “There could be a relief rally at the end of the year but we’re in a holding pattern right now.” So will concerns about the Omicron variant upset what is usually a strong holiday rally? “I don’t expect the variant will undo the progress that has been …

Omicron poses risks to global growth, inflation: Rating agencies
3 years ago

Omicron poses risks to global growth, inflation: Rating agencies

Al Jazeera  

More countries closed borders on Monday, casting a shadow over economic recovery from the two-year coronavirus pandemic. The Omicron COVID-19 variant could hurt global growth prospects while also pushing prices higher, rating agencies Moody’s Investors Service and Fitch Ratings said on Monday, after the World Health Organization said the variant carried a very high risk of infection surges. “The Omicron …

US economy: Omicron poses 3 major threats to recovery, says Jerome Powell
3 years ago

US economy: Omicron poses 3 major threats to recovery, says Jerome Powell

CNN  

New York CNN Business — Here we go again. Federal Reserve Chairman Jerome Powell is set to testify Tuesday that the Omicron variant threatens America’s economic recovery. “The recent rise in Covid-19 cases and the emergence of the Omicron variant pose downside risks to employment and economic activity and increased uncertainty for inflation,” Powell wrote in prepared testimony he’s set …

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