The spread of the Omicron strain has already had a noticeable impact on global GDP growth. Its consequences will affect global economic growth prospects for a long time. The International Monetary Fund had to revise down its forecast.
Gita Gopinath, First Deputy Managing Director of the IMF, said that global economic losses would total $13.8 trillion by the end of 2024. The organization reduced its estimate for economic growth in 2022 to 4.4% from its earlier prediction of 4.9%. According to data, in the euro area, GDP will add 3.9%. Next year, growth will slow down to 2.5%.
In their forecast, IMF experts take into account the direct impact of the Omicron strain on global economic activity in the first quarter of this year. However, we can assume that it will diminish from Q2 onwards. Still, the economy is threatened by the possibility of global risks, as geopolitical tensions remain high, and the ongoing climate emergency indicates that the chances of major natural disasters are heightened.
Paschal Donohoe said that the Eurogroup expected the existing inflationary pressures to start easing that year. They expect this to be due to supply chain optimization in some sectors of the economy as well as a reduction in the high savings rate, which played an important role in price pressures last year.
