The Bank of Korea(BOK) has projected that the global economy will continue to post a recovery next year despite larger uncertainties resulting from the omicron variant.

The central bank issued the projection on Sunday in its weekly publication on foreign economic conditions after taking into account the pandemic situation, global supply chain bottlenecks, the speed of China’s economic slowdown and the U.S. Federal Reserve’s rate hikes. 

The BOK projected that, despite future uncertainties tied to the virulent strain, anti-virus measures will likely be eased in line with the development of oral COVID-19 treatments, advanced countries’ administration of booster shots and emerging economies’ rising vaccination rates.  

The bank also said it believes that recent upsurge in raw materials prices and the logistics crisis will likely stabilize and help unblock bottlenecks in global supply chains.

The central bank said that the global economy will steadily recover from the shock caused by the pandemic and is likely to continue the momentum by reverting economic activities back on track.