Economists generally expect the world economy to weather any fresh wave of coronavirus infections caused by the Omicron variant relatively easily, even if the latest version of the virus has clouded the economic outlook with uncertainty.
A central reason for their relatively optimistic initial assessment is the growing ability of economies to adapt to past Covid-19 restrictions, alongside the rollout of vaccine programmes.
Any new wave of the virus was therefore also unlikely to curb the rise in inflation, the economists said, although it would raise doubts among central bankers about the wisdom of tightening monetary policy early.
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