Commodity prices, Omicron weigh on growth prospects: ECB
High commodity prices, the emergency of the Omicron coronavirus variant and quicker central bank policy tightening could all weigh on global growth this year, the European Central Bank said in an regular Economic Bulletin on Thursday.
“Persisting supply bottlenecks, rising commodity prices and the emergence of the Omicron variant of the coronavirus continue to weigh on the near-term growth prospect,” the ECB said.
“An earlier and faster tightening of monetary policy in large advanced economies may have spillover effects on financial conditions in emerging market economies and would represent a downside risk to growth,” it added.
It said that Omicron was likely to induce higher volatility in global growth but it was too early to predict its longer-term impact.
Source: Reuters (Reporting by Balazs Koranyi; Editing by Alison Williams)