The risk of an Omicron variant outbreak on the global economy

What are the chances of an Omicron outbreak on the worldwide economy?

What do the forecasts indicate for the growth of the global economy with the outbreak of the Omicron variant?

What has been the impact of the Omicron outbreak on various industries?

As the Omicron variant of the coronavirus spreads rapidly worldwide, concerns have grown about its impact on the global economy, which has endured a two-year recession caused by the epidemic. Just over a year after the first successful trial of the Covid-19 vaccine, a sense of dread has swept across the world.

The effects of the Omicron outbreak on the global economy

Stricter restrictions in rich countries hurt economic growth. Vaccination had eased restrictions and normalized life, but the identification of the Omicron variant showed that the gates closed much faster than when they were reopening. High inflation is another risk that Omicron could pose to the global economy. Inflation in the US has caused Joe Biden’s government serious problems, and inflation worldwide is reported to be alarmingly high. Inflation reduces economic activity; Commodity prices rise; Supply chain is disrupted; Production and supply problems increase; Labor returns are delayed, and wages are rising.

Risk of recession in China’s economy

Of course, at this stage, emerging economies are in a better position; Because they are relatively less dependent on foreign currencies, but the risk of devaluation of the national currency in these countries is very high. The ultimate danger is slowness in China as the world’s second-largest economy. Until recently, the country was a shining example of an economic epidemic, is now facing a debt crisis in its vast industry. But not all predictions about the economy in the future are so dark.

 Probability of slowing global economic growth

Managing Director of the International Monetary Fund (IMF) Kristalina Georgieva predicts that global economic growth is likely to slow due to the outbreak of the Omicron variant. “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,” Georgieva said. While parts of Europe and the US are grappling with a wave of more well-known Covid-19 strains, the new variant could destabilize economies that still use quarantine-related quarantines and restrictions.

The effect of Omicron on various industries

Covid-19 has affected and weakened the tourism industry, financial markets, and large economies. Airlines worldwide have been forced to cancel more than 4,500 flights over the Christmas holidays due to a new wave of Omicron outbreaks. American companies suffered the most. Airlines worldwide canceled 2,401 flights on Friday, which coincided with Christmas Eve. Nearly 10,000 flights were also delayed. Meanwhile, Governments canceled 1779 flights worldwide on Christmas Day.

Omicron damage to American airlines

American Airlines were among the first airlines to cancel their flights, which canceled nearly 280 flights on Friday alone. The companies said the cancellation of their flights was a lack of workforce due to an increase in Covid-19 heart disease due to the outbreak of the mutated species Omicron. The number of people with coronary heart disease in the United States has increased in recent days due to the prevalence of the Omicron variant, which accounts for three-quarters of cases in the United States and some areas 90%.

High rate of Omicron outbreak in Western Europe

Meanwhile, the Omicron variant is spreading rapidly in Europe, and the incidence of coronavirus in the continent is once again setting new records. France has a history of more than 90,000 infections within 24 hours for the daily infection of the Covid-19, which has never been the case since the beginning of the epidemic. The number of Covid-19 victims on this day is 179, and more than 3,000 people are under the intensive care unit of French hospitals, which has put additional pressure on the medical staff of this country.

In the UK, a new record of about 120,000 cases was recorded in one day, showing a 139% increase in the number of patients with Covid-19 in the last two weeks. However, two medical studies in the UK have shown that, despite the rapid spread of this strain, Omicron is not as dangerous as Delta, and therefore, fewer people are hospitalized. In Italy, the use of masks in public spaces was mandatory. In the 24 hours to Friday, the country recorded more than 44,000 new cases of Covid-19 and 168 deaths. Rome also announced that more than 8,700 people are currently hospitalized across the country for coronary heart disease, and its strains, 1,000 of whom are being cared for in intensive care units.

Possibility of hospitalization of patients with Omicron variant

Recent research by United Kingdom Health Security Agency (UKHSA) has shown that people with the new Omicron variant are 70% less likely to be hospitalized than those with the invasive delta strain. According to the agency, the risk of developing Omicron is 31 to 45 percent lower than the risk of Delta variant. However, the report said that the latest findings should be considered the result of preliminary and uncertain analyzes, as a small number of patients with Omicron are currently hospitalized, and this variant is not yet widespread among the elderly, who are more prone to acute Covid-19. Preliminary findings from the agency’s research are consistent with Imperial College London and the University of Edinburgh.

The need to inject an additional dose of Covid-19 vaccine

The UKHSA also found in its research that the immune system could not protect against the Omicron variant with just two doses of vaccine and that injecting an extra dose of the vaccine would be necessary. However, even with injecting a different amount, the body gradually loses its protective power after about ten weeks, between 15 to 25 percent. Accordingly, the UK health secretary warned its citizens to be vigilant during the celebrations and Christmas holidays and follow health advice to protect themselves and their loved ones.

According to the WHO, the Omicron variant, which was first identified publicly on November 24, is now a very high risk worldwide. In the face of the dire prospect of further restrictions and closed borders, consumers, investors in airlines, chain hotels, etc., have reacted following the identification of the Omicron variant; Oil prices have dropped by about $ 10 a barrel; Future recessions often accompany the decline.

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