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Flu pandemic to hurt state economies
Flu pandemic to hurt state economies
John Lauerman
Bloomberg News
Mar. 23, 2007 12:00 AM
A deadly flu pandemic could drain as much as $9 billion from the economy of Nevada, says a study that suggests states that depend on tourist and entertainment income stand to lose the most if an outbreak occurred.
Nevada, home to the gambling capital Las Vegas, could lose 8.1 percent of its annual production, compared with the average state's loss of 5.5 percent, said the report from the Trust for America's Health, a Washington-based advocacy group. Florida would lose $5 billion, or 5.7 percent. Arizona would potentially lose $12 billion, or 5.5 percent.
A lethal bird flu that has struck in Asia, Africa, the Middle East and Europe may mutate into a form that spreads quickly among people, possibly killing millions worldwide, scientists have said. Such an outbreak of disease would subtract as much as $683 billion overall from the U.S. economy and may lead to a recession, the report said.
"States need to be preparing for a pandemic not just around public health and medical issues, but around economic issues as well," said Jeffrey Levi, the group's executive director.
People would be quick to forgo travel and leisure as the flu spreads around the globe, the report said. Hawaii would see significant losses, as much as $3.6 billion, or 6.6 percent of the state's economy, it said.
Nations are preparing for a pandemic by stockpiling drugs such as Roche Holding AG's Tamiflu, GlaxoSmithKline Plc's Relenza, and vaccines against H5N1 made by Glaxo, Sanofi-Aventis SA, and Novartis AG.
Closing borders to stop the spread of the virus will hurt the transportation and warehousing industries, cutting demand by about two-thirds, according to an earlier estimate by the Congressional Budget Office. Alaska, Wyoming, Nebraska, states in which those industries account for as much as 10 percent of annual productivity, would all see economic losses of at least 6 percent, the report said.
John Lauerman
Bloomberg News
Mar. 23, 2007 12:00 AM
A deadly flu pandemic could drain as much as $9 billion from the economy of Nevada, says a study that suggests states that depend on tourist and entertainment income stand to lose the most if an outbreak occurred.
Nevada, home to the gambling capital Las Vegas, could lose 8.1 percent of its annual production, compared with the average state's loss of 5.5 percent, said the report from the Trust for America's Health, a Washington-based advocacy group. Florida would lose $5 billion, or 5.7 percent. Arizona would potentially lose $12 billion, or 5.5 percent.
A lethal bird flu that has struck in Asia, Africa, the Middle East and Europe may mutate into a form that spreads quickly among people, possibly killing millions worldwide, scientists have said. Such an outbreak of disease would subtract as much as $683 billion overall from the U.S. economy and may lead to a recession, the report said.
"States need to be preparing for a pandemic not just around public health and medical issues, but around economic issues as well," said Jeffrey Levi, the group's executive director.
People would be quick to forgo travel and leisure as the flu spreads around the globe, the report said. Hawaii would see significant losses, as much as $3.6 billion, or 6.6 percent of the state's economy, it said.
Nations are preparing for a pandemic by stockpiling drugs such as Roche Holding AG's Tamiflu, GlaxoSmithKline Plc's Relenza, and vaccines against H5N1 made by Glaxo, Sanofi-Aventis SA, and Novartis AG.
Closing borders to stop the spread of the virus will hurt the transportation and warehousing industries, cutting demand by about two-thirds, according to an earlier estimate by the Congressional Budget Office. Alaska, Wyoming, Nebraska, states in which those industries account for as much as 10 percent of annual productivity, would all see economic losses of at least 6 percent, the report said.
