The omicron variant is dealing a blow to optimistic hopes that the world economy would enter 2022 on a firmer footing, potentially undermining plans by policymakers to focus on inflation rather than weak demand.
The imposition of travel restrictions will shake consumer and corporate confidence, likely limiting activity in some places just as the holiday season gets under way in many economies.
Markets moved swiftly to price in an economic blow. Expectations for interest-rate increases over the coming year dropped by at least 10 basis points on Friday for the central banks of the U.S., U.K. and Australia.