November 30, 2021
06:58
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The coronavirus variant Omicron could hurt global economic growth prospects while pushing prices up, rating agencies Fitch Ratings and Moody’s Investors Service said today after the World Health Organization (WHO) announced that the new option hides a very high risk of jumping infections, Reuters reported.
Everything on the topic:
Omicron – the new coronavirus variant 53
–“The Omicron option poses risks to global growth and inflation, especially as it comes at a time of already strained supply chains, increased inflation and labor market shortages,” Elena Douger of Moody’s told Reuters by e-mail.
According to her, the option is likely to affect demand during the upcoming holidays.
“If the new option affects the interest in risky investments on the world market, it will lead to even greater financial pressure on issuers of debt with large financial needs. For example, emerging market countries that rely on loans on the international market may face facing increased risks for its refinancing, “says Dougger.
For his part, Fitch said it was too early to include the effect of the Omicron option in his economic growth forecasts until there was more information on its contagion and the severity of the disease.
“We currently believe that a new major and simultaneous global collapse, as observed in the first half of 2020, is very unlikely, but rising inflation will complicate the macroeconomic response if the new option is identified,” the statement said. Fitch.
For his part, US President Joe Biden urged Americans not to panic and said the US government is working with pharmaceutical companies to draw up operational plans if vaccines are needed. Biden said the United States would not return to the lockdown this winter, but urged people to get vaccinated, booster and wear masks.
