With Omicron on the rise all over the world, it has halted any idea of coming back to normal life for the time being. Although Omicron, with the combination of masks and vaccinations, can be fought off like a common cold, it has created even more problems with in the global and domestic supply chain. This new variant has also spiked inflation, which can be correlated to the government payments throughout the pandemic and also the supply chain issues. With this new variant, many producers are seeing their employees testing positive again and then having to take a five-day sick leave. This leaves many companies shorthanded, stalling shipments and making it very hard for consumers to get goods. The IMF, International Monetary Fund, predicted that the global economy will grow by 4.4% this year. This figure is down from the original estimated about 5.9%. In the U.S. the decline is projected to be steeper, coming in at 4% in the coming year, a 1.2% decline from the original figure. The U.S. decline is the largest compared to any other country tracked by the IMF. With supply chain issues being plagued by Omicron, inflation is in the rise. The supply chain issues are a direct correlation to why inflation is sky high. The current inflation rate at 7% is not predicted to go down until the middle of 2022. Inflation can also be explained by the Federal Reserve is planning to raise interest rates. Also, for the fact that Bidens Build Back Better plan has been stalled which would have given the economy a boost. With inflation high and the supply chain in a complicated and messed up spot, the beginning of 2022 will be rough for most Americans. Not to mention COVID-19 numbers continuing to claim lives and reinfect most of the world.
By: Luke Schmidt
https://www.wsj.com/articles/inflation-supply-chain-omicron-expected-to-take-a-bigger-toll-on-global-growth-11643119381?mod=Searchresults_pos7&page=1
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