SINGAPORE – Asia’s economic recovery may slow as more countries stop using the Covid-19 vaccine developed by AstraZeneca and the University of Oxford, warned Moody’s Analytics chief economist for Asia-Pacific.
“This adds modest risk to the role that Asia plays in terms of global economic recovery,” Steve Cochrane told CNBC’s “Squawk Box Asia” on Tuesday.
Reports of blood clots in some people who received the AstraZeneca-Oxford injection have led several countries – many of them in Europe – to temporarily stop using the vaccine. The World Health Organization said there is no link between the injection and an increased risk of developing blood clots and is investigating.
Impact of the vaccine on global trade
Cochrane said the problems surrounding the AstraZeneca-Oxford vaccine could hurt global trade – and that 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 still have to see vaccines being launched throughout this year for the global economy to recover.
Steve Cochrane
chief Asia-Pacific economist, Moody’s Analytics
“There is a possibility that this would undermine global trade terms if the vaccine’s launch is delayed in Europe and that would mean that there were some more extensive blockages in the economy in Europe – so it could slow down the pace of global trade,” he explained.
Asian countries have been relatively successful in containing the virus, which has helped their economies recover faster than those in Europe and the United States
Fortunately, the new blockages in some parts of Europe have not reached the industry, said Cochrane. He added that “almost all” the impact of these blocks has affected the service sector.
“So, now, it’s not such a problem and global trade still looks very, very strong,” said the economist. “The vaccine is a risk, of course. It is one of the critical risks, we still have to see vaccines being launched throughout this year for the global economy to recover ”.
Thailand briefly suspends AstraZeneca vaccine
Thailand briefly suspended the use of the AstraZeneca-Oxford vaccine on Friday, but officials said on Monday they would continue to administer the vaccines.
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 waiting for the WHO review, the news agency reported.
– CNBC’s Sam Meredith contributed to this report.