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Influenza Outbreaks and Economic Impact

A serious influenza outbreak can result in human deaths, and the economic impact of an illness of such magnitude can be severe.

  1. General Effects on the World's Economy

    • An influenza outbreak in the corporate sector results in absenteeism in work, which causes disruption of business and reduction in overall productivity. Influenza also results in people avoiding public places like movie theaters, stores and shopping malls, therefore spending less.

      Influenza outbreaks results in weakening of investor confidence and financial markets. Outbreaks result in households becoming extra careful in spending money and so families to save more. In other words, the aftereffects of influenza outbreaks may plunge the global market into deflation. The value of assets and properties could also decline.

    South Asia Economy

    • According to the Food and Agriculture Organization of the United Nations (FAO), it has been estimated that the economic loss from the influenza outbreak in 2003 is in the billions. The local effects of influenza have been very grave, since it resulted in enormous losses of production and employment among the working class. The cost of the 1997 influenza outbreak in Hong Kong is reported by the FAO to be in the hundreds of millions of dollars. It is said that if influenza outbreaks are not controlled effectively, they may even cause a major disruption in farm animal population and global trade. The FAO also reports that South East Asian economies suggest that a single influenza outbreak could result in reduction of Gross Domestic Product (GDP) growth up to 1.5 percent.

    U.S. Economy

    • In the United States, seasonal influenza outbreaks are responsible for costing the economy $10 billion per year, according to the Arkansas Department of Health. Pandemic influenza could result in hundreds of billions of dollars in direct and indirect costs.

      The District of Columbia Department of Health reports that an influenza pandemic could result in additional costs from medical treatment of at least 18 to 45 million people who are suffering from the disease. A Federal Reserve bank document suggests the total economic cost could be around $700 billion per year.

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