Mexico begins shutting down as flu fears spread

MEXICO CITY,  (Reuters) – Mexico began shutting  down parts of its economy yesterday to slow the spread of a  new flu strain as officials urged increased worldwide  precautions against an imminent pandemic.

The World Health Organization (WHO) said it would remain  for now at its current alert level — one notch below full  pandemic — and it would no longer refer to the H1N1 virus as  “swine flu” in a nod to beleaguered meat producers.

New confirmed flu cases were reported in the United States  and in Europe, although a case in Peru, which would have been  the first confirmed case in Latin America outside of Mexico,  was later discounted.

U.S. officials said new infections were occurring, although  worldwide only a handful of people outside Mexico have required  hospital treatment. At least 298 U.S. schools were closed  because of possible flu infections. In Mexico, the worst hit country with up to 176 deaths,  President Felipe Calderon told government offices and private  businesses not crucial to the economy to stop work beginning on  Friday to avoid further spreading a virus that is striking  across age and class lines.

“There is no safer place than your own home to avoid being  infected with the flu virus,” Calderon said in his first  televised address since the outbreak started.

In Mexico City, where the virus has already brought public  life to a standstill, some were skeptical while others vowed  not to take part in the shutdown.

“Closing businesses is not right and not fair. What are we  going to live on? Air?” said Andres Garcia, who works in a  tailor shop in the old colonial centre of the capital.

Mexico’s assembly for export factories, known as  maquiladoras, said it would defy the shutdown call while some  of the country’s mines also vowed to stay in operation.

With its tourism industry savaged, shoppers staying home  and exports to the U.S. in steep decline, Mexico could find  itself in the longest, deepest recession it has seen in years,  according to analysts.

Global markets were taking the flu news in their  stride, and Wall Street opened stronger on hopes that the U.S.  recession is easing, although it later slid as auto giant  Chrysler filed for bankruptcy.

The International Mone-tary Fund’s chief economist Olivier  Blanchard said fallout could be “quite dramatic” in some  countries, particularly in the tourism sector. But he said it  was too early to predict the full impact on a global economy  already deep in recession.

“The information that we have at this stage is it is a  relatively minor (economic) event,” Blanchard said.

Previous studies at the World Bank have said a severe flu  pandemic which triggers a clampdown on trade could cost the  global economy trillions of dollars.

The WHO and flu experts say they do not yet know enough  about this new strain to say how deadly it actually is, how far  it might spread and how long any potential pandemic may last.

Flu epidemics generally last a few weeks or months in any  single community, and can pass around the world in one or two  waves over 18 months to two years before fading out. U.S. officials have reported 109 confirmed swine flu  infections in 11 states and the only death recorded outside of  Mexico — a Mexican toddler visiting Texas.

U.S. Health and Human Services Secretary Kathleen Sebelius  told a public webcast there were still many unanswered  questions. “We know what happens year in, year out with  seasonal flu. What we don’t know is if this is going to be more  virulent or milder,” she said.

U.S. Transportation Secretary Ray LaHood said there were no  reasons to cancel flights to Mexico.

U.S. Vice President Joe Biden was forced to row back after  he said on television he would tell his family to stay off  planes and subways to avoid the virus.     “He said something on TV differently than what he meant to  say,” White House spokesman Robert Gibbs said, adding that the  government guidance on simple, common-sense precautions such as  hand-washing stood. Worldwide, 11 countries have reported confirmed cases of  the H1N1 strain, with the Netherlands the latest to join the  list. It said a three year-old who had recently returned from  Mexico had contracted the virus.

Switzerland also confirmed its first case yesterday in a  man returning from Mexico. Peru’s health minister Oscar Ugarte  told Reuters that further tests on a suspected case there had  determined it was not the new flu strain.

Around the world flu preparations were intensified after  the  World Health Organization raised its alert level to phase  5, the last step before a pandemic.

The WHO recommended all countries track any suspect cases  and ensure medical workers dealing with them wear protective  masks and gloves. But it stopped short of recommending travel  restrictions, border closures or any limitation on the movement  of people, goods or services.