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SARS to plague Asia's economies

"Even without new outbreaks of SARS in the near future, the after-effects of the disease are likely to be felt for months to come."

Economist Intelligence Unit report

The effects of SARS will plague Asian economies for months even though the disease has been contained because tourists will take longer to return to the region and higher unemployment will dampen spending, a report said yesterday.

However, it is the health of the US economy and other major markets which remain the key driver for the region's economic growth, the Economist Intelligence Unit (EIU) said in a report received here.

"Even without new outbreaks of SARS in the near future, the after-effects of the disease are likely to be felt for months to come," it said.

"Business travel to the region may rebound quickly but tourists from Europe and the US will take longer to return.

"Jobs lost in tourism-related sectors, combined with a rather mixed outlook for visible exports, will have implications for unemployment and make local consumers more reluctant to spend."

EIU said it remained possible that SARS would "continue to disrupt some Asian manufacturing production in the coming months" but at the same time "economic developments in the US and other major markets are likely to be much more important for Asian growth."

Any new outbreak of SARS is expected to have less economic disruption in the region as governments have learned to deal with the menace, the EIU said.

It noted that "the principles of quarantine and containment are now better understood and the administrative procedures more refined."

East Asia accounts for the bulk of the 800 SARS deaths and 8,400 infections worldwide.

Aside from the toll in human lives, SARS has devastated the region's vibrant and profitable tourism industry.

Yesterday the World Health Organization (WHO) said it had lifted its travel advisory on Beijing and removed it from the list of areas affected by SARS.
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