Hong Nam-ki: "Economic Losses from COVID-19 Will Be Greater Than SARS and H1N1"

[Image source=Yonhap News]

[Asia Economy Reporter Kim Hyemin] Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, forecasted on the 10th that "the economic ripple effects caused by the novel coronavirus infection (COVID-19) will be greater than those of past cases such as SARS, MERS, and H1N1."

Deputy Prime Minister Hong made this remark during a plenary session of the National Assembly's Planning and Finance Committee, responding to a question from Shim Ki-jun, a member of the Democratic Party of Korea, about the negative ripple effects COVID-19 might have on our economy.

He said, "Due to the COVID-19 situation, an impact on economic growth in the first quarter is inevitable," adding, "While more observation is needed regarding the extent of the impact on the growth rate, the current situation is more severe than during MERS, and what is particularly concerning is the possibility that the global economy, as a whole, is becoming difficult, which could in turn affect us again."

Deputy Prime Minister Hong added, "Compared to past cases, the economic ripple effects this time, both globally and on Korea, are expected to be greater." According to data compiled by international organizations such as the World Health Organization (WHO), SARS is estimated to have caused economic losses of 40 billion dollars, and Ebola about 22 billion dollars.

Regarding the possibility of declaring Daegu and Gyeongbuk as special disaster zones, Hong stated, "In the case of social disasters like infectious diseases, there are no clear criteria for declaration, but we are considering declaring them even if the requirements are relaxed."

This content was produced with the assistance of AI translation services.