economy

Business resumption races ahead even as Omicron adds to uncertainty: Nomura

Business resumption races ahead even as Omicron adds to uncertainty: Nomura

MUMBAI: The Nomura India Business Resumption Index touched yet another high of 114.5 for the week ended 28 November. The index tracks high frequency data. According to Nomura, with domestic coronavirus cases continuing to moderate, mobility is almost back to pre-pandemic levels, and this is boosting services. “However, border reopening will likely be slow, as the discovery of the Omicron variant globally has prompted the Indian government to review and tighten its international travel guidelines, and several states are on alert, it said in a note on 28 November. Despite the uncertainty triggered by variant Omicron, high frequency data suggest that the economy remains on a recovery path amid rising inflationary pressures. Google workplace and retail and recreation mobility rose by 3.6 percentage points and 1.6 pp, respectively, while the Apple driving index eased a marginal 0.5 pp. Labour participation rate improved to 40.5% from 39.8% in the prior week, while power demand recovered 1.2% week-on-week from 0.2% previously. Tourism is a relatively small share of the economy (tourism revenues stood at 1.1% of GDP in 2019), but continued normalisation of domestic contact-intensive services is contingent on infection cases remaining low, as only around 32% of the population are fully vaccinated, Nomura said. On Monday, World Health Organization said that the recently discovered Omicron variant of the novel coronavirus poses a very high risk globally, despite uncertainties about the danger and contagion levels of the new strain. Multiple countries including the US and the UK, have announced restrictions on travellers from southern Africa, where the variant was reported, due to the new covid-19 variant. According to a Reuters report, more countries reported cases, prompting border closures and reviving worries about the economic recovery from a two-year pandemic. Japan said on Monday it will shut its borders to foreigners to prevent the spread of the Omicron variant, joining Israel in imposing some of the strictest border controls since the variants discovery in South Africa. Download.

economy 2021-11-29 Livemint