Global And Local Economic Impacts Of Swine Flu
Posted on Aug 25, 2009 by Reena Daruwalla | Comments 0
Apart from the obvious impact of the H1N1 Swine Flu virus on public health and the country’s health services, there is another, economic impact of the pandemic, which is manifesting itself in countries across the world.
Impact on Global Economy Struggling to come out of a recession:
As most of the world’s economies are recovering from the crushing economic depression and are celebrating the fact that world is now emerging out of the clutches of the worst economic recession since the 1940’s, experts are now warning that swine flu could still take a toll of productivity and financial systems.
Experts are now predicting a ‘Swine Flu Recession’ which will mean hundreds of billions of dollars in global GDP that would be lost when the flu slowed world trade and put unimaginable portions of the world’s work force into hospitals and sick beds.
According to an AFP report, main threat to financial stability is the risk that high levels of absenteeism could lead to breakdowns in the functioning of key financial systems. 70 percent of the overall economic cost would come from absenteeism and efforts to avoid infection and it is thought that developing countries would be hardest hit, because of poorer health care systems and higher population densities.
Impact on Maharashtra’s Economy
One of the states that is worst hit by the Swine Flu pandemic is Maharashtra, with positive cases and deaths being in Pune, Mumbai, Aurangabad, Nashik, and more. Add to this the fact that the state is also reeling under what is being called the ‘worst ever drought’ and any hopes that people had of an economic recovery have received a severe setback.
According to a report in the Times of India, the dual factors of the pandemic and the drought is spoiling the government’s revival plan. Business activities in many parts of the state have come to a halt and reportedly if the present situation continues for a long time, the state’s economy will be sorely affected. Mumbai being the financial capital of the country is also greatly impacted by the H1N1 outbreak and fall in worker productivity there is bound to effect the rest of the nation as well.
Impact on Travel and Tourism
Pandemics are notorious for scaring people into staying at home, and the H1N1 Swine Flu pandemic is no different. Domestic air fares have recently come down, in response to fewer people traveling and reportedly falling passenger loads. According to this Times report, the Swine Flu has had the effect of bringing fares to their lowest point in two years.
The popular sectors such as Goa, Mumbai and Bangalore now offer tickets as cheap as Rs 2000 and even less. Even the usually pricier sectors have their prices slashed by 30 to 40 percent. According to the report GoAir, is offering Mumbai-Goa tickets for Rs 1,975; at discount of Rs 300, Spice Jet is offering Mumbai-Goa at 2,150 minus Rs 150 and even full-service carrier Kingfisher’s ticket is priced at Rs 2,250.
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