IMF Chief: Omicron Variant Can Slow Post-Pandemic Recovery Globally

Kristalina Georgieva, President of the International Monetary Fund, said that the surge of the Omicron variant of coronavirus can slow down the economic recovery of the world after it reeled from the effects of the first and second waves of infections last year and earlier this year.

"A new variant that may spread very rapidly can dent confidence and in that sense, we are likely to see some downgrades of our October projections for global growth”. The IMF released its latest World Economic Outlook report which projected a global growth of 5.9% this year and 4.9% in 2022 while downgrading the growth prospects of the US and other major wrld economies in its latest revisions.

The IMF has stated that concerns about a slowdown existed even before the new Omicron variant of COVID-19 made news. Presently, the uneven distribution of vaccines around the world and global supply chain issues are being seen as the main factors dragging down the global economic rebound.

A surge in global demand and supply-side shortages of components like semiconductors is also aggravating inflation, said the IMF.