OECD cuts world growth outlook on Omicron fears

‘New variant may threaten recovery’

International travellers wearing personal protective equipment (PPE) arrive at Melbourne's Tullamarine Airport on November 29, 2021 as Australia records it's first cases of the Omicron variant of Covid-19.

The Organisation for Economic Co-operation and Development (OECD) warned on Wednesday that the Omicron variant threatens the global economic recovery as it lowered the growth outlook for 2021 and appealed for a swifter roll-out of COVID vaccines.

The global economy is now expected to expand by 5.6% this year, down from an earlier forecast of 5.7%, the OECD said in its updated economic outlook which warns that low vaccination areas could create “breeding grounds” for deadlier virus mutations. Its forecast for 2022 remains unchanged at 4.5%, but the report was released only days after Omicron was detected.

“We are concerned that the new variant of the virus is further adding to the already high levels of uncertainty and risks, and that could be a threat to the recovery,” OECD chief economist Laurence Boone said.