The 2003 Severe Acute Respiratory Syndrome Epidemic: A Retroactive Examination of Economic Costs

Although the SARS epidemic was rapidly contained, it generated considerable panic and a short period of economic turmoil across some Asian countries. The tourism, transportation, hospitality, and retail sectors were hardest hit, with some estimates putting losses at over $10 billion. This paper examines the economic impacts of the epidemic and explains how they were influenced by public policy, information and media coverage, and the behavioral responses of individuals. It also provides general policy recommendations that could help lessen the harm of future epidemics on both public health and the economy.