SINGAPORE – Asian economic recovery could slow as more countries suspend use of the Covid-19 vaccine developed by AstraZeneca and Oxford University, warned Moody’s Analytics chief Asian-Pacific economist.
“It adds a modest risk to the role Asia plays in terms of global economic change,” Steve Cochrane told CNBC’s “Squawk Box Asia” on Tuesday.
Reports of blood clots in some people who received the AstraZeneca-Oxford shot caused several countries (many of them in Europe) to stop using the vaccine temporarily. The World Health Organization said there is no link between the shot and an increased risk of developing blood clots and that it is investigating.
Impact of vaccines on world trade
Cochrane said problems related to the AstraZeneca-Oxford vaccine could hurt world trade, and this is bad news for Asia, where many economies depend on commercial activity.
The vaccine is a risk, of course. It is one of the critical risks, we have yet to see vaccines deployed throughout this year for the global economy to kick off.
Steve Cochrane
chief economist in Asia and the Pacific, Moody’s Analytics
“There is a possibility that it could hurt in terms of world trade if the deployment of vaccines is delayed in Europe and this would mean that there were some more extensive blockages to the economy in Europe, and this could slow down the pace of world trade.” , explained.
Asian countries have been relatively successful in containing the virus and this has helped their economies recover faster than those in Europe and the United States.
Fortunately, renewed blockades in some parts of Europe have not affected manufacturing, Cochrane said. He added that “virtually all” of the impact of these closures has affected the services sector.
“So right now it’s not that important and world trade still seems to be very, very strong,” the economist said. “The vaccine is a risk, of course. It’s one of the critical risks. We have yet to see how vaccines are put in place this year to get the global economy back on its feet.”
Thailand briefly discontinues AstraZeneca vaccine
Thailand briefly stopped using the AstraZeneca-Oxford vaccine on Friday, but authorities said Monday they would continue to administer the shots.
Thai Prime Minister Prayuth Chan-ocha became the first person in the country to receive the AstraZeneca-Oxford shot on Tuesday, Reuters reported.
Elsewhere in Asia, Indonesia said on Monday it would delay the launch of the AstraZeneca-Oxford vaccine while awaiting the WHO review, the news agency reported.
– CNBC’s Sam Meredith contributed to this report.