Omicron will cost Israel $640m. every three weeks, central bank chief says
Central bank governor Amir Yaron said the Omicron variant will cost the Israeli economy around $640 million every 20 days, coming from decreased consumption and workers sick or stuck in isolation.
The Omicron coronavirus variant sweeping Israel will cost the economy around two billion shekels ($641.81 million) every 20 days, central bank governor Amir Yaron said on Monday.
"At this point we are not talking about a macro-economic development," Yaron told parliament's finance committee. The economic hit would come from decreased consumption and workers sick or stuck in isolation, he said.
"Most estimates are of a relatively short wave - a number of weeks, that is why the cost to the economy per confirmed coronavirus case is not of macro-economic proportions. In such a scenario, pinpoint compensations focused on sectors that have been hurt should be continued," Yaron added.
Yaron said the government should also prepare for a worse scenario in which vital services could be hurt as infections soar. "We're not there now but such scenarios could bring about macro-economic damage," he said.
He said Israel's economic growth for 2022 would likely be 5.5% with businesses recovering after the Omicron wave subsides.
