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Coronavirus: Southeast Asia’s deaths skyrocket as Delta variant engulfs region
- The region’s outbreak has eclipsed that of previously hard-hit places, with cases jumping 41 per cent over the past week to more than half a million
- Governments are reimposing growth-sapping movement curbs and have been forced to blow out their fiscal deficits as central banks run short of ammunition
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Southeast Asia is emerging as a battlefield for one of the world’s worst Covid-19 outbreaks, fuelled by the fast-spreading Delta variant amid a slow roll-out of vaccines.
The momentum of the region’s outbreak has now eclipsed previously hard-hit places like Latin America and India, with cases jumping 41 per cent over the past week to more than half a million, according to Bloomberg analysis of Johns Hopkins University data. Deaths rose 39 per cent in the seven days through to Wednesday, the quickest pace in the world, and are likely to rise further as a spike in fatalities typically follows a surge in cases.
Meanwhile, Southeast Asia’s overall vaccination rate of 9 per cent lags developed regions like western Europe and North America – where more than half the population has received shots – and outpaces only Africa and Central Asia.
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As large parts of the developed world reopen for business, the worsening situation across most of Southeast Asia means countries are reimposing growth-sapping movement curbs. Singapore is the exception, where sealed borders and high vaccination rates are keeping the virus largely contained in the region’s sole developed economy.
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Equities and currencies across the region have sold off in recent weeks, while governments are forced to blow out their fiscal deficits and central banks run short of ammunition. That comes as the US Federal Reserve undertakes early discussions about tapering asset purchases, reducing room for policymakers in Asia to ease policy further without risking weaker currencies.
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