OECD warns Omicron variant could derail world economy

Fears variant will amplify shortages, driving up inflation, or even force repeat of earliest phase of pandemic

• Coronavirus - latest updates
• See all our coronavirus coverage

Western governments could be forced to bring in fresh emergency financial support for businesses and households if the Omicron coronavirus variant causes a severe global slowdown, a leading economic thinktank has warned.

Sounding the alarm as more cases are identified, the Organisation for Economic Co-operation and Development (OECD) said a renewed wave in the pandemic threatened to add to the existing strain on the world economy from persistently high levels of inflation.