Moody’s: Omicron covid variant threatens global economic recovery
The new Omicron covid variant is expected to derail the global economic recovery and threaten the inflation outlook, Moody's Investors Service said in its latest report.
Key quotes
"Just as many countries were moving to a semblance of post-pandemic normalcy, the Omicron variant has injected new uncertainty.”
“However, the experience following the emergence of other variants, notably the Delta variant, and the public health policies put in place to counter successive waves of infections provide some basis for identifying the factors that will determine the economic and credit impact of this latest variant.”
"Countries with an assured supply of effective vaccines and delivery systems, and high levels of public acceptance of the vaccines, will remain better positioned.”
“The emergence of the new variant also comes during a period of fragile economic recovery, with stretched supply chains, elevated inflation and labor market shortages.”
“Business disruption resulting from the spread of the new variant could prevent supply chain stresses from easing, dampening productive capacity and stoking further cost pressures in sectors with exposure to global supply chains.”
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