After the UN World Health Organization declared the new strain of the corona virus extremely dangerous and more and more countries closed their borders once again, hopes for an economic recovery have begun to fade.
According to the news agency Reuters, the major airlines have taken immediate steps to ban passengers from South Africa from where the new variant of the Corona, the Omicron, was launched.
The airline industry fears that the spread of the Omicron variant could lead to travel restrictions in other destinations as well.However, after the airline's share price fell, it returned to normal on Monday when hopes were raised about the Omekron variant that it could be less dangerous, despite initial concerns.
The head of the US Federal Reserve, Jeremy Powell, has said that the new variant could lead to a long-term rise in prices, which has made inflation uncertain.
Jeremy Powell said in a statement to the US Senate on Tuesday that the rise in Corona cases and the emergence of new variants have put jobs and economic activity at risk, while inflation has become uncertain.
He said health concerns could discourage citizens from doing jobs where distance from the people could lead to a slowdown in the labor market and further impact on the supply chain.Fitch Ratings and Moody's Investors Service, two of the world's leading economies, have warned that the Omecron variant could affect the prospects for a revival of the global economy and increase prices.
On the other hand, US President Joe Biden said in a statement after meeting with Corona team members at the White House that citizens need not panic, the government is working with pharmaceutical companies in view of the need for new vaccines.
President Joe Biden said the lockdown would not be enforced in the winter, but warned against vaccines and booster shots and the wearing of masks.
President Biden said there was concern about the new strain of coronavirus, but there was no need to panic.
The United States has banned travelers from eight South African countries, but President Joe Biden said the travel ban would allow more people to be vaccinated.In addition, the World Health Organization (WHO) has said that genetic mutations are occurring rapidly in the Omekron variant, some of which could affect the spread of the epidemic.
The World Health Organization (WHO) says more research is needed to understand the omicron variant and how vaccines and the immune system can cope with it.
