SWINE FLU can hurt Economy

Panic-stricken IT firms ask staff to cut travel

A recent study says that the rate at which swine flu is spreading across the world, chances are that 30 per cent of the population might get infected. In India, that would mean more than 30 crore people being affected!

Meanwhile, the World Health Organisation has raised its pandemic alert to the highest level of six, formally declaring that the widely spreading A/H1N1 influenza has developed into a global pandemic.

India could be affected on many other counts too:
Markets: Indian markets have yet to press the panic button yet over swine flu, but there might be some impact like there was at the time of the SARS (Severe Acute Respiratory Syndrome) outbreak in Asia. Some investors are already drawing parallels between swine flu and SARS.
High treatment cost: Healthcare costs are likely to soar if the epidemic spreads further in India.
Demand to be hit: With people keeping away from crowded areas (like shopping malls, retailers, theatres, restaurants), demand for various goods, especially 'non-essential' goods, is likely to drop. With consumption levels declining, the economy will be badly affected.
Absenteeism: As more people get infected, there is a strong likelihood of absenteeism rising at workplaces, leading to loss of man-hours and slippage in productivity.

Impact on Travel and tourism

Many travel and tourism companies are experiencing a loss of business as people postpone their non-essential travel plans. Many tours to infected nations have been cancelled. Although no particular advisories have been sent out by other nations against travel to India, if the epidemic spreads, then tour operators believe that the tourism sector will be badly hurt.