Friday, September 25, 2009

Is the Global Economy the Next Swine Flu Target?

As if the swine flu effect on health was not enough, the H1N1 virus is also set to cause devastating effects on the already tattered global economy. Economists have predicted that this influenza will reduce the growth rate of key industries and also affect the GDP growth that had become weak during the financial crisis.

Travel and tourism sector of the United States generates a lot of revenue for the economy. But with the spread of swine flu in various cities and communities in the country, tourists have cancelled their vacation plans. This in turn has affected an already weak recovery of these areas. Based on estimations, more than 60 million Americans travel 50 or more miles annually to other destinations during Christmas and Thanksgiving. But with the spread of swine flu in many countries across the globe, many travelers are planning to stay at home which in turn will affect service industries like hotels and airlines to a great extent.

Experts have also stated that if the swine flu pandemic continues to spread in the developing countries, fragile economies will get destroyed and millions will die. Due to the absence of sick workers, revenue and productivity level of other business sectors will also go down. Business organizations that have reduced the number of employees in order to bring down costs during the global economic crisis might face more problems with the spread of H1N1 virus. In order to avoid such future crisis, it has become essential to measure the actual impact of this virus once the flu season is gone.

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