Flu and the economy

ok this is not something most take into account

But if the worst case comes to be and this is a pandemic, there will be massive effects in the political economy of the world

As of 1996 the numbers in use were 500 m, mostly in the developing\ emerging economies. We are already seeing this, from the bans of pork from affected areas in places like Japan (ignorant) and Russia (ignorant, or just protected local producers)

But we are starting to see the early effects and it could slow, even stop, the recovery

according to the tea leaves (data) i at times like to peruse

Even if absolutely nobody dies, can you imagine the damage caused if 30% of the world is sick for a week?

imagine that!

The Cost of Swine Flu

Can the epidemic take down global markets?

The media has been hyper-focused this weekend on the news that more than 1,000 people in Mexico have become infected with Swine flu, also known as Influenza A H1N1. Nearly 90 people have died from the outbreak. The strain appears to have spread to several countries including the United States. One of the most notable pieces of information about this outbreak is that in the US and Canada the cases have been described as “mild.”

One of the first things that accompany news of dangerous flu viruses is an economic evaluation of the effects of a pandemic. In a recent article, Reuters pointed out in 2008 that the IMF said a flu pandemic could cost $3 trillion and cause a 5% drop in global GDP. In other words, it would almost certainly turn the current deep recession into a worldwide depression.

…more…

http://www.newsweek.com/id/195221