Sars virus is impacting on HK economy

The Severe Acute Respiratory Syndrome (Sars) virus is having a strong effect on the Hong Kong economy ' 2003 GDP forecasts have been downgraded and the budget deficit is likely to widen. So far, the main impact has been on the domestic economy with the travel and tourism industry being the worst hit. The full impact of the virus will depend on how quickly it is contained. According to Andrew Clare, financial economist at Legal & General, there are three shocks the Sars virus is having on Hong Kong's economy. First, on the labour side, people falling ill has an impact on businesses an...