Global economic growth forecasts for next year are revised downwards The U.S. economy is likely to slow significantly

Economists expect the Wave of Omilon infections to weaken global economic growth in early 2022 and lower economic growth forecasts for the United States and the world in early 2022.

From the crackdown on the service industry to the thousands of flights that caused American airlines to cancel over the Christmas holidays, Omikeron has had a huge impact on the U.S. economy that is visible to the naked eye.

In the week ending Dec. 26, the number of diners at U.S. restaurants fell 27 percent from the same period in 2019, the biggest gap since April, according to OpenTable.

Mark Zandi, chief economist at Moody's Analytics, cut his forecast for U.S. GDP growth in the first quarter from 5.2 percent to 2.2 percent because he believed economic losses would intensify in the first quarter, according to the Wall Street Journal.

Zandy notes:

Travel spending is decreasing due to the devastating outbreak, and sporting events and Broadway shows are being cancelled. It feels very similar to what happened when Delta first attacked the United States.

Ian Shepherdson, chief economist at Pantheon Macroeconomics, an economic consultancy, said that the Opichron virus will now have a significant impact on people's consumption behavior and dampen the demand for service spending, which constitutes a large part of economic growth.

The company cut its forecast for the U.S. economy's annualized growth rate for the first quarter of 2022 from 5 percent to 3 percent, and other economists have also expressed concern about the downside risks to their existing forecasts.

Bloomberg has also previously pointed out that the global economic recovery is likely to be completely disrupted by the Omicron variant, arguing that the global economy grew by only 0.7% in the last three months of the year, half of the growth rate in the previous quarter.

Economists now expect the high contagiousness of Aumicron to lead to short-term weakness in U.S. consumer spending and overall economic growth.

But most economists still believe that while Aumechroon will delay the global economic recovery from the first quarter to the second quarter, it will have less impact than previous waves.

"Overall, each wave of outbreaks is doing a little less damage than the previous one," Zandy added, "healthcare providers are already doing better than they used to be, and so are the strategic realignments of businesses." ”

Earlier this month, the OECD's chief economist warned that the coronavirus's Obicjung variant virus could hit the economy harder and risk a sudden drop in prices if it invalidated the vaccine and led to a tighter lockdown; the organization slightly lowered its global GDP growth forecasts for this year, as well as its economic growth forecasts for the United States and the eurozone this year and next, and sharply raised its inflation outlook for developed countries this year.

In addition to the impact of the epidemic, not long after Democratic Senator Manchin refused to "rebuild the good" through the Biden administration before the end of the year, Goldman Sachs also immediately lowered the US GDP forecast for next year.

According to the Federal Reserve Bank of Atlanta's GDP forecasting tool, the current fourth quarter of the U.S. economy is expected to grow at an annual rate of about 7.6 percent.

In response to the huge impact, the U.S. Centers for Disease Control and Prevention (CDC) on Monday reduced the recommended quarantine time for asymptomatic infected people from 10 days to 5 days, citing long-term absenteeism caused by employees' isolation straining operations at hospitals, airlines and other businesses.

This article is from Wall Street Insights, welcome to download the APP to see more