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Economic Weather Report: Swine flu impact may be less than expected

Posted in News

Bernard Hickey looks at the potential economic impact from the Swine flu outbreak in this economic weather report. The best measure is the impact of SARS, which was relatively limited and fleeting in China, Hong Kong and Singapore, although global tourism may be hit more this time because of the global recession. New Zealand may also suffer more because of its relatively high profile as an outpost for the outbreak early in the story.

We welcome your help to improve our coverage of this issue. Any examples or experiences to relate? Any links to other news, data or research to shed more light on this? Any insight or views on what might happen next or what should happen next? Any errors to correct?

We welcome your comments below. If you are not already registered, please register to comment in the box on the right or click on the "'Register" link at the bottom of the comments. Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making these comments.

If there had been no

If there had been no cases here I bet we would have seen arguments from the Tony Alexander brigade that this would only hasten the returning migrants and ipso facto the next housing boom. Maybe we will see a mass migration of UK expats in NZ back to the UK. LOL!!

A huge criticism of th

A huge criticism of th media....
Over and over again, including you Bernard, have not actually listened to the official reports...
We have no swine flu cases in NZ..we have a few SUSPECT cases, some of which have been confirmed as NOT swine flu (Nortcote College)
Because as you say Bernard, our authorities are very open on matters like these, the rightfully 'panic' at 1st signs and swing into action as a precautionary action....which is also a a hands on 'exercise' to improve procedures for the future.

Our Media in NZ is primarily responsible how it is reported off shore, and have done a very poor job so far reporting the facts, but rather acted irresponsible by competing for the best drama and headlines.

So as the rest of the world is concerned...at this point in time, NZ does have swine flu. front page news...But If all cases prove negative, which has a very good chance of happening...reporting world wide "NZ swine flu negative" will be on bottom page 5 or not reported at all.

If -ve, and/or fully contained if +ve, Any effects on NZ airlines, tourism, can be placed squarely at the feet of NZ media.

Yes - but if we

Yes - but if we did not report things as they are, conspiracy theories will abound and leave us worse off.

SARS is not a very good comparison - it was not easily spread from human to human. The WHO has now said that transmission is taking place between people - so we may be in for a rough ride.

Didn't the last Gumnut blow

Didn't the last Gumnut blow $ 200 million, give or take, on Tami-Flu virus innoculations. Might be a chance to use $ 20 or $ 30 worth of it, before the stuff expires into uselessness ( as the last Gumnut did )

Dead Mexicans are a fact.

Dead Mexicans are a fact. If this virus is anything like the 1918 variety, the initial outbreak will probably result in few, if any deaths. It is was the second onset, or wave of the manifestation that resulted in the deaths of 8,600 New Zealanders, in just two months. Leaving aside how the virus came into being, any pandemic outbreak will stop tourism and business travel dead. There are also reports coming out of Mexico that cattle and other livestock are dying as a result of this virus too. The impact of a virus affecting our dairy herds would be devastating.

Steptoe - I agree, its

Steptoe - I agree, its all sensationalist stuff at the moment.
Of course we need to treat it seriously, but its been blown out of proportion at this stage

Doug : might I suggest

Doug : might I suggest that you stockpile food and water. Find a basement or bunker, and hunker down until the pandemic has passed. Meanwhile, the rest of us will stay above ground, and get on with our lives. We will let you know when the hand-carts have removed the last of the 8600 dead, if we can remember to do so.

OK so now we have

OK so now we have freaking swine flu confirmed in NZ - no longer such sensationalist stuff Steptoe.

So what next for NZ now that we have a potential human to human deadly pandemic on our shores. Absolutely gutting that one of the first countries it has spread to - that's our tourism industry finished off and probably student migration.

What will the impact really be for New Zealand? Will the economy shut down and people stay home in fear just as they have in Mexico City.

So the media gets off

So the media gets off light, it does exist in NZ....lucky break.
So lets all count to 10 sloowwlly then panic in an orderly fashion'
So long as, as Doug mentions, we and the 'boffins keep in mind the 1918, later the measles and polio pandemics, and also the hong Kong flu...

Shame the economist and banks had not done so, we would not be having a financial pandemic now.

I hope this flu season

I hope this flu season passes like any other, but from a risk management point of view those in denial are in a fantasy world. Risk = (probability of event occurring) x (impact of event occurring). What is rational is for businesses to plan for the potential impact of an event to that business.

We are well past the probability stage, given the WHO alert increase to level 5.

Doug - please provide a

Doug - please provide a link that WHO have already raised to level 5?

The WHO level is 4.

The WHO level is 4.

http://www.who.int/csr/disease/avian_influenza/phase/en/index.html

Steptoe is quite right. The important points are no deaths outside of Mexico and the cases here are not very sick, they are all improving.

Don't panic, just practice good hygiene - as you should anyway.

Yes thanks Trev, I knew

Yes thanks Trev, I knew it was level 4 just wanted to hear Doug say it :). He seems on the jumpy side.........

By the way - I have little doubt it will eventually hit level 6, but in the meantime thankfully most people seem to be acting rationally. I suspect we may be heading towards something like the outbreak in the late '60s. However economically it could not have come at a worse time - for example it would probably help put the housing market back into deep freeze (I sense it was heading that way again anyway - things here in Nelson have gone pretty much back to where they were before the late summer 'bounce' in terms of sales in the past 3 weeks).

Just to prove the doomsayers

Just to prove the doomsayers wrong, I popped across the fence, and had a frolic with the neighbours kune pigs ( as you do, in Canterbury....ahem ). That was yesterday. Today, I am still a swine, but no sign of the flu..............ahhhhhhhhhhhhhhhhhhhhhh.