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The World Health Organization (WHO) has raised its pandemic alert for swine flu to the second highest level, warning that "all countries should immediately now activate their pandemic preparedness plans".
The move to a phase 5 alert means there is sustained human-to-human spread in at least two countries and WHO believes a global outbreak of the disease is imminent.
Margaret Chan, WHO's director-general, made the decision on Wednesday to raise the alert level from phase four - signifying transmission in only one country - after reviewing the latest scientific evidence on the outbreak.
"Influenza pandemics must be taken seriously precisely because of their capacity to spread rapidly to every country in the world," she told a news conference in Geneva, adding that "all countries should immediately now activate their pandemic preparedness plans".
Vaccine search
"The international community should treat this as a window of opportunity to ramp up preparedness and response. Above all this is an opportunity for global solidarity as we look for responses and solutions that benefit all countries and all of humanity.
"It really is all of humanity that is under threat during a pandemic," she said.
The increase in alert level also means that there will be greater efforts to produce a vaccine.
Paul Garwood, a WHO spokesman in Geneva, told Al Jazeera that while there was no vaccine for the new virus, it could be treated with drugs.
"It's new, it's causing severe illnesses in Mexico and people should be aware of this.
"At the same time we know that this illness can be treated with drugs that are on the market and that symptoms are mild and they are recovering."
More countries confirm cases
WHO has thus far confirmed human cases of swine flu in Mexico, the US, Canada, Britain, Israel, New Zealand and Spain. Separately, Germany, Austria and Switzerland have also confirmed cases.
The virus is believed to have claimed up to 160 lives as of Wednesday, with the Mexican government confirming eight deaths directly linked to the flu, downgrading its previous figure of 26.
In the US, a 23-month-old Mexican child died on Wednesday, becoming the first person outside of Mexico to be killed by the swine flu.
The family of the child had recently travelled from Mexico City, crossing the border into Texas, US officials said.
At least five other people across the US were also taken to hospital after falling ill from the virus.
Barack Obama, the US president, described the situation as serious and urged US schools with suspected cases to close.
In a speech marking his first 100 days in office, he also urged Americans to take precautions such as washing hands and avoiding work, school and travel if ill.
"We are continuing to closely monitor the emerging cases of the PN1 flu virus throughout the United States … this is obviously a very serious situation, and every American should know that their entire government is taking the utmost precautions and preparations," he said.
Obama called on local officials to be vigilant in tracking suspected cases and said "more extensive steps" may be required.
He has asked congress for $1.5bn so the government can respond adequately to the threat, saying that it being a new strain of flu, it was not yet known how the situation would play out.
Reports of the toddler's death in Texas came hours after Germany's national disease centre said three people there had the flu strain and Austria confirmed its first case of the virus.
Economic cost
Al Jazeera's Franc Contreras, reporting from Mexico City, the capital of the country where the virus is thought to have originated, said the government downgraded the number of deaths linked to the flu from 26 to eight on Wednesday.
Mexico's president responded to the raised alert by telling citizens to stay home with their families from Friday, May 1, for a five-day partial shutdown of the economy.
In his first televised address since the crisis erupted last week, Felipe Calderon said on Thursday that the country will suspend non-essential work and services, including some government ministries, for the five-day period.
"There is no safer place than your own home to avoid being infected with the flu virus," Calderon said.
Jose Angel Cordova, the health minister, said the food, medical and transportation sectors would not be affected.
But the virus has begun to bite hard in an economy already reeling from the global downturn.
Cuba has banned all flights to and from its neighbor and Argentina announced on Tuesday a five-day ban on flights arriving from Mexico.
Mexico has estimated the outbreak is costing companies at least $57m a day and contributing to a 36 per cent loss in tourism revenue.
The country's finance ministry has established a $450m fund to fight the virus, after health authorities said up to 159 people there may have died from the new strain of PN1 virus.
Health ministers from the region are to hold an emergency meeting on Saturday to discuss the threat of a pandemic while WHO was set to hold a "scientific review" of the outbreak to collect what was known about how the disease spreads, how it affects human health and how it can be treated.
PHOTO CAPTION
Commuters, wearing protective face masks to prevent infection from swine flu, ride in the subway in Mexico City Wednesday April 29, 2009.
Al-Jazeera
