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IMF Chief Warns Omicron Covid Variant Could Slow Global Economy Recovery

Mount Equity Group Tokyo, Japan > News > Markets > IMF Chief Warns Omicron Covid Variant Could Slow Global Economy Recovery

The IMF raised concerns that uneven distribution of vaccines was slowing the rebound. (File)

Washington:

The new Omicron variant of Covid-19 could slow the global economic recovery, just as the Delta strain did, IMF chief Kristalina Georgieva said Friday.

“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,” she said at a Reuters event.

In its most recent World Economic Outlook, the fund projected global growth of 5.9 percent this year and 4.9 percent in 2022, but the United States and other major economies suffered sharp downward revisions after the spread of the Delta variant “caused some friction,” Georgieva said.

“Even before the arrival of this new variant, we were concerned that the recovery, while it continues, is losing somewhat momentum,” the IMF chief said, noting that policymakers are now dealing with new issues…

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