Damage to the global economy from a new strain of coronavirus estimated


Bloomberg: global economic growth will be halved due to omicron-strain of coronavirus

Damage to the global economy from a new strain of coronavirus estimated

Photo: Andrew Kelly / Reuters

In the fourth quarter of 2021, global economic growth will halve due to the impact of the new omicron strain of the coronavirus. This is how Bloomberg estimates the damage. According to the publication, the world economy has been growing by only 0.7 percent in the last three months of the year, which is half of the previous quarter.

“As 2021 draws to a close, the global economic recovery risks being bewildered by the omicron strain of the coronavirus,” said Tom Orlik, chief economist at Bloomberg Economics. According to the expert, Germany, France and Italy will experience the greatest burden due to outbreaks of COVID-19.

In the eurozone, the economy is expected to grow only 0.8 percent in the fourth quarter over the previous three months, 0.3 percentage points less than forecast in November before the omicron arrived.

For other countries, analysts have an even gloomier outlook. For example, China's economy is expected to grow only 4.5 percent (0.5 percentage points below the previous forecast), Brazil's 0.2 percent (minus 2.6 percentage points), and Russia's 2.6 percent (minus 1 , 4 percentage points).

Earlier in December, the World Bank's chief economist for Russia, David Knight, listing the risks for Russia, drew attention to the fact that the threat of a pandemic is pressing on the country's economy more than in a number of other states. He explained this conclusion by the low rates of vaccination. The specialist also pointed out the threats associated with a surge in inflation, international sanctions, as well as an energy transition that threatens Russia in the long term.

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