Omicron broke as a disaster on the economy?

More than 200 cases of Omicron have been reported in India, doubts remain about its effect on the vaccine and AIIMS has warned of a third wave coming from it. Meanwhile, one of the reasons for the shock in the stock market on Monday has been considered to be Omicron's growing threat. But now the country and the global economy are also being told a threat from this danger. Apart from the experts who say that the economy is threatened, the indication of government institutions is also on the same side.

The Central Bank (RBI) has said that Omicron can derail the recovery of the economy. However, it is too early to say where Omicron will turn in the coming times.

The Finance Ministry has said in the Monthly Economic Review Report (November) released in December that Omicron can create a new crisis for the recovery of the global economy. However, it also said that due to the increasing pace of vaccination in India, the Omicron variant is less likely to have much effect. Finance Minister Nirmala Sitaraman has also said the same thing.

Rating agency Fitch has reduced India's GDP growth rate estimate to 8.4 percent for the current financial year. However, Fitch has increased the GDP growth forecast for the next fiscal to 10.3 percent.

Rating agency Moody's, released on December 1, has said that the economic impact due to the Omicron variant of Corona on growing economies will depend on the restrictions imposed by the government, how the government financially supports the private sector.

Moody's believes Omicron's threat is rising at a time when economies are passing through a critical period, with skyrocketing inflation, labor shortages and supply chain disruptions.

The first and second wave of Corona has already caused a lot of damage to the MSME sector, even many businesses have come to a standstill. In such a situation, the possibility of a third wave of corona from Omicron can be dangerous for this region.