The International Monetary Fund together with global central banks is concerned about the new Omicron virus strain. The IMF is sure that the virus spread may lead to grave risks to the global economy.
IMF Managing Director Kristalina Georgieva said that Omicron was the main reason for a considerable slowdown in the global economic recovery. "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," Kristalina Georgieva said.
Notably, not so long ago, Loretta Mester, president of the Cleveland Fed, also expressed the similar idea. She said that Omicron might threaten the US economy and cause a jump in consumer prices. Loretta Mester warned that “the Omicron coronavirus variant threatens to fuel soaring inflation in the US by putting further pressure on supply chains and worsening worker shortages.”
