Once largely Covid free, Asia economies are now upended by Delta variant

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The Delta variant is challenging the part of the world that’s been most successful in blunting the economic impact of Covid-19.

People queue outside the Central Vaccination Center in Bangkok, Thailand, 22 July 2021. The delta variant is challenging the part of the world that’s been most successful in blunting the economic impact of Covid-19, with Asian countries that snuffed it out locking down again as the virus returns, and others seeing the world’s highest death rates.

Supply chains from Vietnam to Thailand, where outbreaks are surging, have also been interrupted, with factories that make goods for Nike Inc. and Adidas AG shutting down over virus restrictions, potentially missing out on the crucial holiday shopping season. That raises the prospect of Asia’s delta hit reverberating worldwide, if exports are delayed longer term.

Japan recently earned the dubious distinction of being one of only two advanced economies to have its growth outlook cut by the International Monetary Fund. Asia’s largest retailer, Uniqlo operator Fast Retailing Co., lowered its full-year operating profit outlook in July partly due to Japan’s Covid restrictions and those in other Asian markets.

Visitation in Macau, the Chinese territory that’s the world’s biggest gaming hub, is also set to tumble after the first cluster of local cases there in more than a year. Still, the delta variant has been altering calculations and its highly contagious nature may leave a longer-tail impact on places that overcame previous waves.Southeast Asia is now emerging as one of the world’s worst hit regions, recently overtaking Latin America with the highest weekly death rate.

 

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