GDP Growth in Asia-Pacific Seen Lower for SARS

Home>>Business

Last updated at: (Beijing Time) Tuesday, April 15, 2003

GDP Growth in Asia-Pacific Seen Lower for SARS

DISCUSSION

CHINESE

SEND TO FRIEND

Standard & Poor's Ratings Services said Tuesday that the spreading of Severe Acute Respiratory Syndrome (SARS) will lower growth rates of most economies in Asia for 2003, and Hong Kong may suffer the gravest damage.

According to S&P report, the virus has affected within Asia not just tourist arrivals and consumer spending, but also business operations and investment.

If the virus proves more virulent than initial estimates, economic dislocation and sustained budgetary deterioration could put pressure on countries and regions whose fiscal position is stretched for their rating level, especially those with negative outlooks, including Hong Kong, the report said.

Market analysts and economists have pared down GDP growth forecasts for most Asian economies, even based on a scenario of the virus being under control and having a one-quater influence oneconomic activities.

"The adjustment in each economy is largely proportionate with the gravity of the outbreak, and to the importance of tourism and domestic consumption to the economy. Countries and regions with stronger fiscal flexibility are likely to endure the temporary setbacks," said Ping Chew, director in standard & Poor's Asia-Pacific Rating Group.

Nevertheless, if the virus spreads longer than expected, the threat to ratings from fiscal pressures will increase in line with any outbreak, Chew said.

Questions?Comments? Click here

SARS Death Toll Reaches 64 in Chinese Mainland

China Launches Emergency Research Program on SARS

Canada Lab's SARS Gene to Speed Vaccine--Researchers

>> Full Coverage

China Has not Provided Weapons to Iraq Since 1990 ( 2 Messages)

SARS May not Originate from China: WHO Official ( 10 Messages)

HK Star Leslie Cheung Commits Suicide ( 41 Messages)

The War to Topple Saddam Is a Burden on the Americans ( 13 Messages)

Who Are the Real Criminals? ( 28 Messages)