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Economics

Economists Game Out How Omicron Will Hurt the Global Recovery

  • Outlook rests on what scientists discover about new variant
  • Biggest risk is another spiral of lockdowns and restrictions
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WATCH: Shane Oliver of AMP Capital discusses how the concerns about the Omicron coronavirus variant might affect the global economy and markets.Source: Bloomberg
Updated on

The omicron variant is dealing a blow to optimistic hopes that the world economy would enter 2022 on a firmer footing, potentially undermining plans by policy makers to focus on inflation rather than weak demand.

The imposition of travel restrictions will shake consumer and corporate confidence, likely limiting activity in some places just as the holiday season gets underway in many economies. Japan will effectively ban the entry of all foreign visitors as part of its plan to curb the virus spread, broadcaster NTV reported.