Intensity of Omicron on economy

 

In the light of the new variant of concern, the Omicron variant of Covid-19 brings about new uncertainties to the global economic outlook. The variant appears to spread remarkably quickly; however, it will take about two more weeks before we could ascertain the severity expected.

 

The intensity of omicron on the economy will depend on the speed of transmission, virulence, associated hospitalization rates, and death rates. It is highly dependent on the effectiveness of vaccines and also the antiviral medications that are taken against it.

 

Impacts of COVID-19 on Civil Aviation:

 

The Omicron variant has brought a major setback, the International Civil Aviation Organization (ICAO) actively monitors the economic impacts on civil aviation and regularly publishes updated reports. It also includes the adjusted forecasts for the coming days.

 

Impacts of Omicron variant across industries

 

The Omicron variant has had a wide impact on the global economy.  

 

The Omicron variant has spread worldwide without acknowledging borders. This outspread has impacted all sectors, functioning of all industries, and affecting all aspects of our lives causing devastating economic losses and financial losses in addition to significant uncertainties.

 

The latest version along with the substantial report can be viewed at

https://www.icao.int/sustainability/Pages/Economic-Impacts-of-COVID-19.aspx

 

This information is subject to frequent changes and for the most up-to-date figures, you would need to visit the official website of each organization.

 

The Economic impact of Omicron variant on the Aviation and Tourism industry:

 

Tourism is one industry that heavily relies on aviation. By facilitating and promoting tourism, the airline industry will be in a better position wherein it will be able to generate the required economic growth thereby alleviating poverty to a great extent.

 

Currently, according to Sources, the data reveals that it is approximately 1.4 billion tourists globally who are crossing borders every year. Among these tourists more than half of them travel to their destinations by air. In the year 2016, the aviation industry supported almost 37 million jobs within the tourism sector alone, thereby, contributing and generating about USD 897 billion roughly a year to global Gross Domestic Product (GDP) data.

 

According to reports, both air passenger traffic, as well as the air freight/air cargo traffic, are expected to reach numbers that would be more than double in the next two decades to come. The forecasts indicate that in the year 2036, the aviation industry will be at its peak providing about 98 million jobs. It would thus generate USD 5.7 trillion in GDP which amounts to a steep increase of 110% in comparison to the data of the year 2016.

 

Markets in a waiting game:

 

Global markets have not been stable; hence, seesawing. The investors for business are unable to judge the economic implications of the new variant.

 

According to sources, in the last week, Omicron's emergence and the intensity of omicron on the economy led to a major crash in the global stock and oil markets. The markets did regain some of the lost ground but nothing is certain as yet. Reports also suggest that the omicron variant could dodge existing COVID vaccines.

 

With the governments, swift impose on travel restrictions global markets were further spooked by to help keep the new variant at bay.

 

Closed Movie Theaters Leave Void:

 

Small Towns to Big Cities more than 600 remain shut even after almost two years after the onset of the pandemic with no signs of recovery.

 

Initial data suggests that the Omicron variant emergence has had less impact on theatre sales and revenue. Willingness to go to theatres by the audience has not increased since June and the latest data, from September, revealed that people are waiting for a significant reduction in risk from Covid that has grown.

 

After almost two years into the Covid-19 pandemic, reports suggest that about 630 movie theaters remain closed till date across North America. And many may never reopen even in the days to come, leading to a complete shutdown.

 

Omicron has further accelerated trends that preceded the pandemic. Currently, with major films becoming available on the online platform when compared to the past movie releases, there is already a significant decline in the moviegoing crowd.

 

It is seen that Americans are back again jamming football stadiums and visiting theme parks for entertainment, and although the theater attendance is slowly recovering from last years industrywide cinema shutdown.

 

For more analytical data on this refer to 

https://www.bloomberg.com/news/articles/2021-12-10/closed-movie-theaters-leave-void-from-small-towns-to-big-cities

 

Is Omicron a threat to the global economy?

 

The western governments could enforce fresh emergency financial support for businesses and households by the Leading economic thinktank Organisation for Economic Co-operation and Development (OECD), if the Omicron variant triggers a drastic global slowdown.

 

OECDs biggest point of concern raised is the fact that the Omicron variant is spreading rapidly. A renewed Covid wave could worsen global economic recovery, considering the persistently rapid high levels of inflation.

 

There will be a serious disruption to the supply chains if Omicron becomes the dominant Covid-19 variant, in terms of transmissibility and vaccine resistance. It could further result in higher inflation for a prolonged period an

After the discovery of the Omicron, panic has spread across the world. The variant of coronavirus has been classified as a 'variant of concern' by the World Health Organisation (WHO). Recently scientists issued a warning against the virus, its high transmissibility, and low vaccine penetration across the globe.

 

What happens if Omicron becomes severe?

 

If the Omicron coronavirus variant continues to pose a serious threat than expected, it could end up forcing various governments around the globe to impose a higher level of strict restrictions. Governments foresee a terrible blow to demand for goods and services and curb economic activity that is very similar to the earliest phase of the pandemic in 2020

 

While there is still no way to exactly predict what the economic damage from the global COVID-19 coronavirus pandemic and the current Omicron variant will be and what threat it would pose in the near future; however, there is widespread agreement among economists that it will have definitely have a severe negative impact on the global economy.  

 

For more data on this visit the website:

 

https://www.statista.com/topics/6139/covid-19-impact-on-the-global-economy/#dossierKeyfigures