Is Omicron affecting the economic recovery?

in #hive-1679223 years ago

Hello readers, there are rising concerns about the new Omicron variant of covid-19. New cases are popping everywhere across the country, so today, this article will answer essential questions and summarize the current situation.

On January 18, 2022, we witnessed 3,17,532 new cases and 7-day average is 2,71,549. It is an all-time high in 6 months. It will soon break the levels of the second wave, so officially, the third wave is here.
image.png

source

The administration is ready for this time. Businesses are also ready to deal with the situation. We can supply 19,000 Tonnes of oxygen this time but is our economy ready to take another hit? We are witnessing partial lockdown, night curfew, and other restrictions on group activities or any social activities. These restrictions will affect manufacturing and industrial activities negatively. It will affect the whole supply chain. Restrictions will also hit theatres, malls, theme parks, clubs, malls, restaurants. The cases are rising at an alarming rate. That means we can expect a nationwide lockdown. On the other hand, we got Inflation at 5.59%. It is five months high, and experts say it will hit 6% soon.

We are still in the recovery phase after the second wave in this quarter. We were expecting growth of 6.1 %, but after the advent of Omicron, we are now expecting growth of 5.7 %. In the latest edition of the State of the Economy report, RBI showed confidence in the Indian economy, stating that economic activity in India is strong. We saw a sell-off in markets worldwide after the advent of Omicron. The markets recovered and reached the same level again in a blink of an eye. The expected hike in RR (Reverse repo rate) will get postponed among uncertainties revolving around Omicron and the high inflation rate. This year we can expect government expenditure to be around 32 lakh crores.

image.png
src

2021 was an excellent year for Indian start-ups as they received a $77 billion investment compared to 2020. It is 62% more, so we can expect good forging and domestic investment in new-age start-ups, even after the third wave.

In this chaos, people are looking towards budget 2022 with high hopes, but the government is also in starch as we already had a high fiscal deficit last year. We spent 34.5 lakh crores, much higher than we planned.
In summary, there will be the third wave, and we must follow protocols. The government will impose restrictions and lockdown for our good, affecting the overall economic growth. We will be in recovery for a prolonged period.

And omicron will definitely affect the economy because it is 7x more faster than delta

image.png


Hive | 3speak | Twitter | Leo


image.png

Posted Using LeoFinance Beta

Sort:  

Yes, each country is running behind its fixed economy by almost 3 years and it seems a bit difficult for that country to recover from it.

Is it. Another important thing is crypto will be saviour for the people. I think every country should accept crypto. You can see it helped a lot to people in this previous pandemic time.

Posted Using LeoFinance Beta

It's not the Omicron that's affecting the economy, it's bad decisions from our beloved, corrupted governments around the world...
People should digest that and understand WHO is creating the problem and who is miraculously solving it...

I bet on crypto.

Posted Using LeoFinance Beta

That's true. Bad decisions of goverments harming more than omicron. They are following WHO guidelines....

Posted Using LeoFinance Beta

This Omicron variant is nasty and just when things started to open again. I do not think the global economy can take another hit like that.


The rewards earned on this comment will go directly to the person sharing the post on Twitter as long as they are registered with @poshtoken. Sign up at https://hiveposh.com.

If this omicron variant is really that deadly, why the recent announcement to stop using nose marks?

Posted Using LeoFinance Beta

it's not deadly but it spread fast and that is why it's not deadly like delta..

Posted Using LeoFinance Beta

we witnessed 3,17,532 new cases and 7-day average is 2,71,549.

Is it in millions or hundreds of thousands?

Truly, it is mostly likely seeming like a third wave is just around the corner. I hope we get one vaccine that will tackle this mutated COVID-19 viruses once and for all.

I hope the market bounces back and increase in inflation rates stops. My country, Nigeria, the inflation rate is over the roof.

Great article @luckyali

I think omicron will be the natural vaccine for all the people because it is more fastest in spreading but less deadly and that is why it will give the immunity to all of us but that does not mean we have to be careless. As well as, it will take a time to stabilize the economy.

Posted Using LeoFinance Beta