OECD Slashes Global Economic Outlook Over Omicron Fear | Business | Economic and financial news from a German point of view | DW


The global recovery has lost momentum and is becoming increasingly uneven, the Organization for Economic Co-operation and Development (OECD) said in its latest economic outlook on Wednesday, adding that the emergence of the omicron variant could threaten the recovery. .

The 38-member body now expects global output growth of 5.6% this year, down 0.1 percentage point from its September outlook. However, he maintained his forecast of 4.5% growth in 2022.

“We are concerned that the new variant of the virus, the omicron strain, may add to already high levels of uncertainty and risk, and that this could pose a threat to the recovery,” Laurence Boone, economist, told reporters. chief of the OECD.

Boone called on policymakers to ensure COVID vaccines are produced and deployed quickly around the world, including booster doses, while stressing that logistics remain the biggest obstacle to the global immunization campaign.

Omicron risks

The emergence of the omicron variant coincides with a global economic recovery that is losing some of its momentum thanks to disruptions in the global supply chain, soaring consumer prices and increasing cases of COVID, in especially in Europe.

While experts have mostly refrained from judging the economic implications of the new variant, governments quickly reimposed travel restrictions in a bid to tackle the virus, threatening the global recovery.

“In terms of forecasting, this [omicron] exacerbates the risks we have already identified, be it tensions in supply chains, closed borders, tightening health checks, ”Boone said.

“There could be two scenarios: one is that this is a variant like the one we have seen since the start of the pandemic. The winter is going to be difficult. It pushes back the recovery but doesn’t disrupt it. not. We will see more supply tensions and worsening global imbalances, “she said.” Then there is another scenario where it is worse and we will have to protect ourselves much better. In this case, demand could be affected, but it could also lower the pressure on prices. “

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