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, Moody’s Analytics chief Asia-Pacific economist warned.
“It adds a small amount of risk to the role Asia is playing in terms of the global economic turnaround,” Steve Cochrane told CNBC’s “Squawk Box Asia” on Tuesday.
Reports of blood clots in some people who received the AstraZeneca-Oxford injection prompted several countries – many in Europe – to temporarily discontinue the vaccine. The World Health Organization said there is no link between the shot and an increased risk of developing blood clots and is investigating.
Effect of vaccine on world trade
Cochrane said problems surrounding the AstraZeneca-Oxford vaccine could hurt global trade – which is bad news for Asia, where many economies rely on trading activity.
The vaccine is, of course, a risk. It’s one of the critical risks: we still have to see vaccines being rolled out in the course of this year to get the global economy back on its feet.
Steve Cochrane
Chief Asia-Pacific Economist, Moody’s Analytics
“ There is a possibility that it could make a dent in terms of world trade if the roll-out of vaccines in Europe is slowed and that would mean that the economy in Europe has had some profound impacts – then that would speed up the world trade could slow down, ”he explained.
Asian countries have been relatively successful in containing the virus, which has helped their economies to recover faster than those in Europe and the US.
Fortunately, renewed lockdowns in some parts of Europe have not hit production, Cochrane said. He added that “almost all” the consequences of those lockdowns have affected the services industry.
“So it’s not that big of a deal right now and world trade still looks like it’s very, very strong,” said the economist. “The vaccine is of course a risk. It is one of the critical risks, we still need to see vaccines rolled out in the course of this year to get the global economy back on its feet.”
Thailand is briefly discontinuing the AstraZeneca vaccine
Thailand briefly stopped using the AstraZeneca-Oxford vaccine on Friday, but authorities said on Monday they would continue to administer the injections.
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 Monday it will delay roll-out of the AstraZeneca-Oxford vaccine pending the WHO’s review, the news agency reported.
– CNBC’s Sam Meredith contributed to this report.