The Middle East respiratory syndrome (MERS) or coronavirus outbreak could reduce South Korea's economic growth in 2015 by up to 0.3 percent, as it causes drop in tourism and consumption, according to a report by Japanese investment bank Nomura.
The report calculates South Korea's gross domestic product (GDP) will grow by 2.2 percent this year instead of 2.5 percent due to the MERS outbreak in the country since the middle of May, Efe news agency reported.
A reduction in private spending could generate losses of around 0.2 percent in the GDP, the report says.
The outbreak has led to panic among the people to the extent that many avoid going out on the streets or crowded places, leading to a huge fall in sales and consumption, from supermarkets to cultural centres and leisure spots.
Moreover around 110,000 foreign tourists, mainly from China, Japan and Taiwan, have cancelled their trips to South Korea over coronavirus fears, causing losses in tourism-related sectors such as airlines, tour agencies and services in general.
The Nomura report estimates a reduction of around 300,000 foreign tourists till August, which would bring down South Korea's GDP growth in 2015 by another percentage point.
MERS claimed three new victims on Tuesday, taking the total number of dead to 19, while four fresh cases were detected which brings the total number of infections in the country to 154.
Additionally, a total of 5,580 people have been quarantined.
MERS, for which there is no effective vaccine or treatment, first originated in Saudi Arabia in 2012.
