SINGAPORE – Asia’s economic recovery could slow as more countries suspend use of the Covid-19 vaccine developed by AstraZeneca and Oxford University, Moody’s Analytics chief Asia-Pacific economist warned.
“This adds a modest risk to Asia’s role in global economic development,” 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 several countries – many of them in Europe – to temporarily stop using the vaccine. The World Health Organization has said there is no link between shooting and an increased risk of developing blood clots and investigating.
The impact of the vaccine on global trade
Cochrane said the problems with the AstraZeneca-Oxford vaccine could affect global trade – and this is bad news for Asia, where many economies are dependent on trade.
The vaccine is a risk, of course. It is one of the critical risks, we must continue to see vaccines unfolding this year for the global economy to get back on its feet.
Steve Cochrane
Asia-Pacific chief economist, Moody’s Analytics
“There is a possibility that this could be affected in terms of global trade if the launch of the vaccine is delayed in Europe and that would mean that there were some wider bottlenecks in the economy in Europe – then this could slow down global trade,” he explained.
Asian countries have been relatively successful in containing the virus, and this has helped their economies recover faster than those in Europe and the United States.
Fortunately, renewed blockades in parts of Europe have not affected production, Cochrane said. He added that “almost everything” the impact of these blockages has affected the services sector.
“So, right now, it’s not such a big deal, and global trade still seems very, very strong,” the economist said. “The vaccine is a risk, of course. It is one of the critical risks, we have yet to see the vaccines unfold this year for the global economy to get back on its feet.”
Thailand briefly stops AstraZeneca vaccine
Thailand briefly stopped using the AstraZeneca-Oxford vaccine on Friday, but authorities said on Monday they would continue administering 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 Monday it would delay the launch of the AstraZeneca-Oxford vaccine pending a review by the WHO, the news agency reported.
– CNBC’s Sam Meredith contributed to this report.