NSW recorded 2501 new COVID cases overnight, extending the surge in new cases in the lead-up to Christmas.
There are 261 people in hospital including 33 in ICU.
NSW Premier Dominic Perrottet has left the door open for new COVID-19 restrictions, but says he does not want to kill confidence in the economic recovery.
“What we are not going to do is have a knee-jerk reaction and put a dampener on the confidence of this state,” he said.
“I cannot forecast what is going to come our way in 2022. This pandemic has thrown us curveballs.
“If we believe changes need to be made, we will make them.”
He said he understood people were concerned about the omicron variant – with 2500 new COVID-19 cases on Monday – but there had to be a proportionate response.
“We can’t live in a world where there is no COVID,” he said.
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