The emergence of another Covid-19 variant is expected to mean a rockier recovery for our economy

The Institute of Economic Research has just released its predictions for the next few years.

Principal economist, Christina Leung, says Omicron shows how quickly things can change.

She says Auckland's lockdown's endured longer than last year's, and there'll be more community Covid spread under the traffic light system.

Leung says the new variant creates more uncertainty around how businesses and households will plan for the years ahead.