Standard & Poor's Ratings Services said Tuesday that the spreading of Severe Acute Respiratory Syndrome （SARS） will lower growth rates of most economies in Asia for 2003, and Hong Kong may suffer the gravest damage.
According to S&P report, the virus has affected within Asia not just tourist arrivals and consumer spending, but also business operations and investment.
If the virus proves more virulent than initial estimates, economic dislocation and sustained budgetary deterioration could put pressure on countries and regions whose fiscal position is stretched for their rating level, especially those with negative outlooks, including Hong Kong, the report said.
Market analysts and economists have pared down GDP growth forecasts for most Asian economies, even based on a scenario of the virus being under control and having a one－quarter influence on economic activities.
"The adjustment in each economy is largely proportionate with the gravity of the outbreak, and to the importance of tourism and domestic consumption to the economy. Countries and regions with stronger fiscal flexibility are likely to endure the temporary setbacks," said Ping Chew, director in standard & Poor's Asia－Pacific Rating Group.
Nevertheless, if the virus spreads longer than expected, the threat to ratings from fiscal pressures will increase in line with any outbreak, Chew said.
(cctv.com April 16, 2003)
