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Could a New Covid-19 Variant Derail the Economic Recovery Process?

10 mins.
06 JUNE, 2022
ANALYSTS:
Pedro Larrasquitu
Ignacio de la Torre
Leopoldo Torralba
Spain Global AER Global AER Personal
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In a context of extreme economic volatility, it is evident that covid-19 is no longer the primary concern for economic agents. Even so, it is essential to monitor its progression due to the influence it may have on the economy in the coming months (consider China or the West after last winter's wave of Omicron). On that account, in this brief note, we describe our vision of the possible progression of the pandemic and its impact on the economy, especially in sectors such as tourism. We will seek to answer the following questions:
After the great wave of winter cases, how long does immunity to infection last?
Could a new variant truncate health developments over the next few months?
What can we learn from the rise in cases generated by subvariants in countries such as the US or South Africa?

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