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PARIS, Friday (AFP) Top economists warned that the SARS epidemic could sap world economic recovery, as scenes of panic erupted in Beijing over the spread of the virus.

With Asian economies reeling from the impact of Severe Acute Respiratory Syndrome (SARS), world tourism and travel industries were also measuring the damaging effects of the virus.

The Paris-based Organisation for Economic Cooperation and Development (OECD) warned on Thursday the pneumonia-like disease could have a serious economic impact on affected countries and sectors if the crisis escalates.

The SARS outbreak has already pushed stock prices down, hit world airlines, Asian tourism and retailing, the OECD said in its biannual Economic Outlook. The OECD report added that the virus' full economic impact would depend largely on how promptly and effectively it can be brought under control.

There is currently no cure or vaccine for the disease, which emerged in China's southern Guangdong province in November before spreading to some 25 countries, infecting some 4,500 people and killing 261.

The worst-hit countries are China, Canada, Singapore, Vietnam and Taiwan. World Bank economists warned Thursday that the SARS epidemic could wipe out growth altogether in Hong Kong this year, where there have been 1,488 reported cases of the disease causing 109 deaths, unless it is quickly curbed.

In an updated outlook for the region, the World Bank also warned that the oubreak could affect manufacturing in China, which reported 2,422 cases and 110 deaths from the disease.

In North America, the world's second worst-hit region, businesses were also starting to feel the pinch of the SARS scare.

The head of the Bank of Canada said on Wednesday that Canadian growth in the second quarter would be lower than initially expected because of the SARS outbreak, which has been linked to 15 deaths in the country.

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