Swine flu could hit investment: Moody’s Economy.com
April 30th, 2009 - 2:01 pm ICT by IANSNew Delhi, April 30 (IANS) Swine flu scare may adversely impact investment and business confidence in India, the research arm of rating agency Moody’s said Thursday.
“The swine flu scare will likely weigh on wider economic activity such as household consumption and business investment,” Sharman Chan, an economist with Moody’s Economy.com, said.
“Tourism and trade, which already began to show signs of fatigue in the December quarter, may experience a further blow. Asset prices are bound to retreat if the outbreak worsens and discourages investment,” Chan added.
According to Moody’s Economy.com, although India itself may not have upset investors, a general decline in confidence worldwide could spark repatriation of funds from stock markets.
“This will not only be a drag on stock prices, but will again exert downward pressure on the rupee,” Chan added.
The global swine flu outbreak is a major concern to the cash-strapped Indian government, with expenses on preventative measures - or medical treatment when needed - will further weigh on India’s fiscal deficit, she said.
The Indian rupee has traded between $50-$52 for much of the past two months. Amid still-fragile investor sentiment, although a net capital inflow into equities occurred in April, another round of net outflow cannot be ruled out, Moody’s said.
Officially, no case of swine flu has been reported yet in India.
- Foreign investors return to India: Moody's - Jul 15, 2009
- India's growth outlook dim despite stability: Moody's - May 21, 2009
- Tax cut will put more pressure on fiscal deficit: Moody's - Feb 25, 2009
- Foreign funds investments in September at $6.97 mn - Oct 02, 2011
- Divestment to address India's economic woes: Moody's - Jul 16, 2009
- India's 'dream budget' is unlikely to materialise: Moody's - Jul 02, 2009
- Moody's upgrade India's ratings, Sensex soars - Jan 10, 2012
- Worst is not over for Indian economy: Moody's - Mar 20, 2009
- Moody's retains stable outlook on India - Jun 25, 2012
- Geojit to lure Arab investors to Indian bourses - Jun 21, 2012
- Sensex drops 140 points on weak rupee, global worries (Weekly market review) - May 19, 2012
- Rupee slides to new low at 54.30 against dollar - Dec 15, 2011
- Don't panic, Indian economy fundamentally strong: Mukherjee - Aug 08, 2011
- Bullish foreign investors pump in over $5.5 bn into Indian markets - Feb 26, 2012
- Food security bill not sustainable: ADB official - Dec 20, 2011
Tags: agency moody, asset prices, business confidence, capital inflow, downward pressure, drag on, fiscal deficit, flu outbreak, household consumption, indian government, indian rupee, investor sentiment, outflow, preventative measures, repatriation of funds, research arm, signs of fatigue, stock markets, stock prices, swine flu