Washington (Web Desk): The new Omicron variant of Covid-19 could slow the global economic recovery and exacerbate labor shortages, the World Bank has warned.
World Bank President David Malpass worries about the “huge toll” the pandemic is inflicting on people in poor countries, which could have ramifications for the future.
“The Omicron variant shows us once again, the pandemic is still with us and we need to learn how to live with the pandemic,” he said.
In its latest Global Economic Prospects report, the Washington-based development lender cut its forecast for world economic growth this year to 4.1 percent after the 5.5 percent rebound last year.
The forecasts for growth last year and this year were both 0.2 percent lower than estimates released in June.
However, the bank warned, “Various downside risks cloud the outlook, including simultaneous Omicron-driven economic disruptions, further supply bottlenecks (and) a de-anchoring of inflation expectations,” the report said.