The Philippines' economic recovery could be disrupted by a new Covid-19 variant that has led to fresh travel restrictions worldwide, an economist said, 'The Omicron variant could potentially slow down further reopening of the economy, especially in terms of allowing the resumption of foreign tourism in the country and in the rest of the world, as well as the possible delay in further easing the restrictions for returning Filipinos,' Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort said in a statement.

Omicron, which was first detected in South Africa, was classified last week as a 'variant of concern' by the World Health Organization (WHO) given its significant mutations. While it is not yet clear whether it is a deadlier strain, the WHO on Monday said the likelihood of it spreading globally was 'very high'.