World concern raises Swine

As new swine flu infections crop up around the world, there are fears a pandemic could snuff out fragile signs of economic recovery. The travel industry, trade and manufacturing would all suffer as a result. There are already early signs that swine flu is having an economic impact. The fear of a pandemic is now hurting the travel industry as governments in the world warn people to stay away from Mexico. And tour companies are now canceling stops there, threatening Mexico's tourism industry, a main source of foreign currency.

In Mexico City, the economic cost of canceling events and closing entertainment venues is at least 57 million US dollars a day. The SARS outbreak in 2003 provides an example of the potential economic damage. In Canada, particularly Toronto, the outbreak sharply reduced tourism, which led the city's economy losing about 950 million US dollars.
Airline share prices declined again on Tuesday on fears of a sharp drop in passengers. US, European and Asian stock markets all retreated despite positive US consumer confidence data. Oil dropped almost two percent to below 50 dollars a barrel and investors cut their exposure to riskier currencies.
In Chicago, traders bid down the price of pork futures, reflecting consumer worries about catching the virus from meat. The World Bank estimates that a severe pandemic would cause a nearly 5 percent drop in global economic activity, costing the world more than 3 trillion US dollars.

Source : http://www.cctv.com/program/bizchina/20090429/105892.shtml