Swine Flu Pandemic - Economic Impact

The swine flu pandemic has spread faster than the Asian flu or SARS pandemic. Since it appeared in the U.S. in April 2009, the swine flu pandemic has sickened over 33,000 Americans, killing 170 of them. Every state has been affected. Wisconsin has the most (over 5,000 cases). The U.S. has 15% of the world's total number of cases of more than 90,000. It has 25% of the world's deaths of 429. (Source: CDC, U.S. Swine Flu Update; WHO World Swine Flu Update

The swine flu pandemic could prolong the recession by reducing travel and depressing stock market activity. From 2002-2003, the SARS pandemic infected 8,000 people, killing 774 of them. It cost the Asian economies $18 billion due to lost tourism and retail sales. MSCI's emerging Asia-ex-Japan index dropped 14% in the months after the attack. (Source: UK Telegraph, Swine flu pandemic would be fourth in a century, April 27, 2009; Reuters, Is SARS a guide for the economic impact of swine flu?, April 27,2009)

What It Means to You

The swine flu pandemic is not as lethal as the SARS epidemic, but itt is spreading more quickly. For this reason, it could do more damage to the global economy. The SARS pandemic occurred during the beginning of a bull market. Investors were willing to shrug off the attack, and the Asia stock market regained all of its loss by the end of 2003. The swine flu pandemic is right in the middle of a bear market. For this reason, the economic impact could be worse.

Swine Flu Map

The CDC updates the swine flu map every Friday.