by Kathleen Brooks

Global stock markets are lower as more cases of swine flu are reported worldwide.

Mexico is already bracing itself for the economic fallout of swine flu. Since the outbreak became public, a number of countries are banning imports of Mexican meat and some countries are imposing travel restrictions to Mexico just as the summer tourist season gets into full swing.

Authorities in Mexico have requested that bars and movie theaters close during the outbreak. They are also urging people to stay home, which could lower demand and have a negative impact on GDP and financial assets.

Pharmaceutical companies may be the only winners in a pandemic, as demand for medicine to treat the virus would surge.

 

Bloomberg reports that swine flu is worrying global health organizations:

In the U.S., 20 people have confirmed cases of swine flu linked to the Mexican virus, and the acting head of the Centers for Disease Control and Prevention said officials expect more severe infections to begin showing up. The World Health Organization called the outbreak a "public health emergency of international concern."

Reuters calculates that SARS cost East and Southeast Asia $18 billion, or 0.6 percent of GDP.