We are entering 2023 with a new threat of Omicron Variant spread. Those who are planning a new year party need to take a pause and think about the consequences as now we have one more Corona variant among us.

The variant actually has a higher mutation rate compared to its predecessors. Many people are arguing that this new variant is not as deadly as other virus variants of the corona, the symptoms of omicron are also not that alarming. What could go wrong then? Well, plenty could!

First of all, there is no proof that the virus is not deadly, the WHO is still working with the best researchers of the world to understand the Omicron but they haven't concluded anything about it in a certain manner. However, it has been designated as a “variant of concern” by WHO. 

The emergence of this strain gave birth to two questions  first- “Is Omicron a major economic risk for 2023?” and second “Will Lockdown be imposed due to Omicron Spread?”

Well, Let’s discuss the possibilities!

Omicron is a Major Economic Risk for 2023

Like COVID-19 and its other variants,  Omicron may not only affect the health of the masses but also our GDP.  The economists and traders are stressed because of the emergence of this new strain.

The Indian monetary policymakers may need to take cautions because it is expected that this strain will put tension on Global economic growth and will result in inflation. 

Just when India's economy started bouncing back, the new Omicron variant appeared as a major barrier. As per reports, India's GDP grew 8.4% in the second quarter of the financial year as compared to the 7.4% contraction last year.

As per RBI's Projection, the GDP is likely to grow at 9.5% in the financial year 2022. The country's external merchandise trade demand also boomed as the exports were increased by 16.6% in November 2021 as compared to pre-pandemic times. But now with the rise of this new threat of Omicron spread, the global economy is once again at risk of downfall.

Global trade will now be compromised due to the travel restrictions and pandemic restrictions at major airports, ports. Like previous years of Pandemic, the travel and tourism sector will also be adversely affected by the rise of the Omicron variant. The aviation and foreign trade industry will also witness a downfall in the meantime.

According to Experts - If the Omicron variant of Coronavirus becomes more severe than expected, it can force governments around the world to impose the complete lockdown once again which will put a pause on international trades, tourism, and operating of other sectors as well.

Hence, Omicron is a major economic risk for 2023. 

Will Lockdown be Imposed Due to Omicron Spread?

Well, the Omicron cases are surging steadily but the worse thing is that the COVID-19 cases have also started increasing in many states of the country. Maharashtra, Delhi, Rajasthan, Karnataka, Telangana, Gujarat, and Kerala are the most Omicron-affected states of India.

Maharashtra being on the top of the list of Omicron-affected states is now planning to impose some major restrictions in the coming days. If the cases remain to surge, the government of these states may have to impose a complete or partial lockdown.

It has already been concluded that this variant is more contagious than its previous versions and it may prove less deadly too. But the government wants to be extra cautious this time. They have started preparing to fight the new virus with full force.

The state governments are ramping up the oxygen supplies and strengthening the health infrastructure to deal with the possible surge of Omicron and COVID-19 cases.