Omicron variant may reinforce IMF downgrade of global growth projections, says agency’s chief

The Omicron variant of COVID-19 may reinforce a downgrade of the International Monetary Fund’s (IMF) outlook on the global economy, International Monetary Fund (IMF) Director Kristalina Georgieva said on Friday.

Talking during a live-streamed discussion on the global economy, she said, “Let’s be very frank: 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.”

Also Read: Economic activity eases slightly in Nov; Omicron fears loom on economic recovery

Georgieva further stated that even before the advent of the Omicron strain, the IMF had already been concerned about a loss in the impetus of global growth because of the negative impacts of the Delta variant.

“The Delta variant proved to be a disruption that caused some additional delays in production” of goods in the United States and China, the leading engines for world growth, she noted.

The IMF forecasted in October that advanced economies would recover in 2022 their pre-pandemic aggregate yield, and outstrip those by 0.9% by 2024.

It further stated that output for emerging market and developing nations, besides China, was expected to remain 5.5% below the pre-pandemic projection in 2024.

Also Read: Omicron: Why it should worry us? Here’s what experts have to say

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