The AstraZeneca vaccine issues spells big trouble for the Asian economy – leading economist says…
Quick overview
- Blood clots were recorded in some people who obtained the AstraZeneca-Oxford vaccine, prompting many countries, including those in Europe, to temporarily avoid using it.
- The AstraZeneca-Oxford vaccine controversy could damage global trade, which is bad news for Asia, according to Steve Cochrane, Moody’s Analytics’ chief Asia-Pacific economist.
- “So, right now, it doesn’t seem to be a big deal, and global trade appears to be very, very strong,” Cochrane said.
AstraZeneca’s Covid vaccine problems could stymie global trade, according to an economist.
SINGAPORE – Asia’s economic recovery could be slowed as more countries ban the Covid-19 vaccine produced by AstraZeneca and the University of Oxford, according to Moody’s Analytics’ chief Asia-Pacific economist.
On Tuesday, Steve Cochrane of CNBC’s “Squawk Box Asia” said, “It adds some moderate risk to the position that Asia plays in terms of the global economic turnaround.”
Blood clots were recorded in some people who obtained the AstraZeneca-Oxford vaccine, prompting many countries, including those in Europe, to temporarily avoid using it. The World Health Organization has concluded that there is no correlation between the shot and an increased risk of blood clots and is conducting more research.
The effect of vaccines on global trade
Issues surrounding the AstraZeneca-Oxford vaccine, according to Cochrane, could affect global trade, which is bad news for Asia, where many economies depend on trade.
Of course, there is a risk involved with the vaccine. It’s one of the most serious risks; vaccinations must be implemented over the course of the year for the global economy to recover.
Steve Cochrane – MOODY’S ANALYTICS CHIEF ASIA-PACIFIC ECONOMIST
Director of BM International Group Vinh Dang also raised concerns at the latest Import & Export Forum for Vietnam, which has attendees from some of the larger import and export companies in Vietnam. Vinh said our import & export services & construction services experienced a small boost in productivity following the new vaccine’s announcement, which gave operators more incentive to open business lines again. However, this latest news will be a real set back.
Confidence in the new vaccine programs is key to bring back normality within the global markets.
Vinh Dang – Director of BM International Group
“There’s a chance it will put a dent in terms of global trade if the vaccine rollout were postponed in Europe, and that would mean more severe economic lockdowns in Europe — that could slow down the rate of global trade,” he said.
As a result of their relative success in suppressing the virus, Asian economies have recovered more quickly than those in Europe and the United States.
Germany is the new country to halt the AstraZeneca vaccine due to concerns about blood clots.
Fortunately, manufacturing has not been impacted by renewed lockdowns in certain parts of Europe, according to Cochrane. He went on to say that the services sector has been hit the hardest by the lockdowns.
“So, right now, it doesn’t seem to be a big deal, and global trade appears to be very, very strong,” the economist said. “Of course, there is a danger with the vaccine. It’s one of the most serious risks; vaccines must be implemented over the course of this year for the global economy to recover.”
Thailand temporarily suspends the use of an AstraZeneca vaccine.
Thailand temporarily suspended the use of the AstraZeneca-Oxford vaccine on Friday, but authorities announced on Monday that the shots would resume.
According to Reuters, Thai Prime Minister Prayuth Chan-ocha was the first person in the world to receive the AstraZeneca-Oxford shot on Tuesday.
In other Asian news, Indonesia announced Monday that it would postpone the launch of the AstraZeneca-Oxford vaccine while waiting for a WHO study, according to the news agency.
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