Risks to recovery

Global economy will increase policy complications for India

The third year of the pandemic has started on a weaker than expected note for the global economy. The renewed spread of Covid-19 infection shows that the economic outlook will remain uncertain for some more time. Although symptoms in the currently prevalent Omicron variant are said to be less severe, it is far more transmissible than earlier variants. Mobility restrictions, as a result, have been imposed in various parts of the world, which would affect the ongoing recovery. The International Monetary Fund (IMF) in its latest World Economic Outlook update has thus revised its forecast downwards for the global economy.