A fast spread of the Omicron variant is expected to hit the global economy, including the U.S. and China.
According to the Wall Street Journal on Tuesday, economic experts from around the world are lowering their growth forecast for the global economy, including the U.S. next year. Mark Zandi, chief economist at Moody’s Analytics, downgraded his Q1 U.S. gross domestic product (GDP) forecast from 5.2% to 2.2%. Citing reasons, such as less travel and cancellations of sporting events and Broadway shows, Zandi said the situation is very similar to the past summer, when Delta hit. Pantheon Macroeconomics also lowered its growth forecast for the U.S. in Q1 next year from 5% to 3%.
The World Bank recently cut its forecast for China’s economic growth next year from 5.4% to 5.1%. It predicted that the economy will continue to shrink next year as the spread of Omicron variant could lead to longer-lasting restrictions. The Bundesbank, Germany’s central bank, also downgraded its economic growth forecast for Germany next year from 5.2% to 4.2%.
Jae-Dong Yu firstname.lastname@example.org