The Omicron variant of COVID-19 adds new uncertainties to the global economic outlook but much will depend on its speed of transmission, hospitalisation and death rates, and also the effectiveness of vaccines, Moody's Analytics said.
In its commentary titled 'Much to Learn About OmicronFast', Moody's Analytics said although the variant appears to spread "remarkably quickly", it will be at least two more weeks before more will be known about this new variant.
The new and potentially more contagious variant Omicron was first reported to the World Health Organization (WHO) from South Africa on November 24.
It has since been identified in about 12 more countries including Botswana, Belgium, Hong Kong, Israel, UK, Germany and Australia.
Moody's Analytics said it will be at least two more weeks before more will be known as scientists around the world build a better understanding of the new variant and as the severity of infections becomes clearer.
India, which battled the deadly second wave blamed on the Delta variant in April-May, faces the Omicron challenge after easing curbs to a large extent following an improvement in the situation.
"The new Omicron variant illustrates the existing risk to the global economy from regions or individual countries that have low vaccination rates. This includes all of sub-Saharan Africa, where rates remain below 50 per cent, and 60 countries globally with rates below 20 per cent," it said.
