SINGAPORE – Asia’s economic recovery could slow as more countries suspend use of the Covid-19 vaccine developed by AstraZeneca and the University of Oxford, the chief economist at Moody’s Analytics warned.
“This adds a bit of modest risk to the role that Asia is playing in terms of the global economic downturn,” Steve Cochrane told CNBC’s “Squawk Box Asia” on Tuesday.
Reports of blood clots in some people who received the AstraZeneca-Oxford shot have led to several countries – many of them in Europe – temporarily stopping using the vaccine. The World Health Organization has said there is no link between the shot and an increased risk of developing blood clots, and it is being investigated.
Vaccination on world trade
Cochrane said vaccination issues against AstraZeneca-Oxford could hurt world trade – and that’s bad news for Asia, where many economies depend on trade activity.
The vaccination is obviously a risk. This is one of the critical risks. We have yet to see vaccines roll out over the course of this year for the world economy to get back on its feet.
Steve Cochrane
Chief Economist in Asia and the Pacific, Moody’s Analytics
‘There is a possibility that it could put a dent in world trade if the roll-out of vaccines in Europe is delayed and that this means that there are more extensive closures in the European economy – then it could slow down the pace of world trade . , ”He explained.
Asian countries have been relatively successful in fighting the virus, and this has helped their economies recover faster than in Europe and the US
Fortunately, renewed locks in some parts of Europe have not hit production, Cochrane said. He added that ‘almost all the effects of the closures had an impact on the service sector.
“So it’s not that big of a problem, and world trade still seems to be very, very strong,” the economist said. “The vaccine is obviously a risk. It is one of the critical risks. We have yet to see vaccines roll out over the course of this year so that the world economy can get back on its feet.”
Thailand briefly discontinues AstraZeneca vaccine
Thailand suspended the use of the AstraZeneca-Oxford vaccine on Friday, but authorities said on Monday they would continue to administer the shots.
Thai Prime Minister Prayuth Chan-ocha became the first person in the country to receive the shot from AstraZeneca-Oxford on Tuesday, Reuters reported.
Elsewhere in Asia, Indonesia said on Monday it would delay the roll-out of the AstraZeneca-Oxford vaccine while the WHO awaited review, the news agency reported.
– Sam Meredith from CNBC contributed to this report.