Omicron Is Expected to Dent Global Economy in Early 2022

A winter surge in Covid-19 cases driven by the Omicron variant is prompting economists to downgrade U.S. and global growth expectations in the early part of 2022 as businesses struggle with absenteeism and consumers stay home to avoid getting sick.

Several economists have recently cut forecasts for the U.S. following early signs that a sharp rise in cases has already disrupted parts of the economy. Airlines canceled thousands of flights over the Christmas holiday weekend and into Monday, in part due to Covid-19-driven staff shortages.

The federal Centers for Disease Control and Prevention reduced on Monday the amount of recommended time that infected people who are asymptomatic…