Delta variant spread causes serious economic crisis in US: Report
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Washington: The spread of delta variant and the sizeable segment of unvaccinated people are slowing the progress of the US economic recovery from the Covid-19 pandemic, Joseph Brusuelas, chief economist at accounting and consulting firm RSM US LLP, has said.
Brusuelas in a blog post remarked that the infections from the US have increased to a rate of 157,000 per day, with each loss of life and the use of medical resources and foregone activity taking a toll on economic progress, IANS reported.
As per a report by the Xinhua news agency, Brusuelas noted that the refusal of a segment of the US population to accept vaccination is restraining overall economic activity and the full reopening of the economy, as around 62 per cent of the total American population over 12 have been fully vaccinated so far.
"Businesses that have been scrambling to find workers and input products to meet surging demand are now likely to find customers-and workers-less willing to risk exposure to an unvaccinated person or to an unwitting transmission of the delta variant," he said, adding his firm recently downgraded its forecast for US economic growth in the second half of the year.
"We are now anticipating the economy to grow by 6.5 per cent for the entire year with the risk of lower growth should events dictate. Should the delta variant spread further, then we would expect to shave more than a percentage point off that forecast in the upcoming days or weeks," he said.
Brusuelas' comments came after economists at Goldman Sachs recently downgraded their forecast for US economic growth in the third quarter to 5.5 per cent from 9 per cent due to the impact of the Delta variant.
"The impact of the Delta variant on growth and inflation is proving to be somewhat larger than we expected," economists at the investment bank said, noting spending on dining, travel, and some other services is likely to decline in August.
Brusuelas also warned that the fourth wave of the pandemic caused by the Delta variant has the potential to rival the peak of infections of earlier this year, as populations move back indoors in the fall and winter.