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Port Douglas (pte016/22.04.2003/10:30) - Southeast Asia is suffering from the worst economic crisis in half a decade. The reason behind it is the SARS virus, the New York Times (NYT) http://www.nyt.com reports. Five years ago the crisis was caused by a wave of bank failures and currency devaluations, which overtook the region and left it devastated. Hong Kong's, Singapore's and Taiwan's economies have actually begun to shrink. Not far behind are the economies of Malaysia and Thailand.
Travellers are cancelling or postponing trips, staying away from public places such as restaurants, bars and market places, cinemas and hotels. The service industry is also suffering. The scare of the disease has also been the reason for many cancellations at commercial events and trade fairs.
Paris and London are also being affected. The sale of luxury goods has also slumped, resulting in reduced sales in tourist areas, around hotels and airports.
"The SARS virus has clearly had an impact on Asia, with many airlines cutting their capacity," NYT quotes Michael E. Metcalf, Burberry's chief operating officer as saying. "The Hong Kong consumer has been choosing to stay rather more at home, and not to get out there and shop as usual."
The consumer electronic market and the automobile sector have not yet been affected by the virus-related economic crisis.
Due to the global extent of the virus, economists are finding it hard to predict how the long the crisis will last, and also what the long-term effects will be. It will, they say however, have an effect on the growing integration of the global economy.
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