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How big a threat is Omicron to Asia?

Asian economies, like those elsewhere, have adapted to living with COVID-19 restrictions so that the impact of any tightening would be smaller than it was last year. And unlike in many EMs, there is still room for fiscal and monetary policy to be loosened if prospects took a turn for the worse. Asian exporters could also benefit if a new wave of global infections led to increased demand for consumer goods.

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