Swine Flu and the World Economy

Is swine flu spilled a glass that will break the camels back (world economy) is already reeling under the impact of global recession? It is worth analyzing as it proves that the country's resilient economic slow down and face the threat of swine flu. While some countries can adapt to the situation and another might be difficult to guess what a lot of assets and resources that could otherwise be used for putting the economy back on track will be spent on combating the virus. Health expenditure across continents has increased significantly, and developing and developed countries that are slowly turning the corner had to put some key expenses on the back burner to solve this problem step.

What is the virus got to do with economics? Which industries are affected due to growth? Whether it leads to job loss? Is it crippling the economy? Analysts have always found the relationship between good healthy and robust economy. Healthy countries tend to grow faster productive time is lost due to illness. Swine flu in its ability to influence millions of people are eating away at productivity as more and more people report sick for work. This starts a chain reaction which, although not directly connected has the ability to lead the economy into a spin. There was a lot of travel warnings issued by various countries to avoid traveling to places where the virus has left much influence.

Most countries have a system of screening in airports and places where people travel constantly. People who are ill with regard to appropriate treatment and quarantine for some time until they recover. Economies that are dependent on tourism are the worst affected. Tourists around the world have changed their travel plans, and most of them are completely canceled. There are many industries that are associated with tourism in the range of airlines, hospitality, food joints and food industry. Airlines and hotel industry already reeling under the impact of the recession are the worst hit industries. They have accumulated huge losses and many are on the verge of closing. Many small industries that are closely associated with these are also still affected by the swine flu effect.

All this has resulted in huge loss of revenue to governments, but also led to huge losses of jobs. It has also led to increased government social spending as they are to support people out of work. What swine flu has done is add the worries of the global economy and a recovery that is supposed to happen within six months could probably take a year. Health is wealth and a healthy economy that is not tied down by swine flu will grow the fastest. Countries that spend money on health problems and can control the spread of swine flu will stand a better chance to end its recession.

Posted in: swine flu, swine world economy