Sydney: Natural disasters cost the Australian economy billions of dollars in the first months of 2025, according to government data.
According to Lao News Agency, an analysis published on Monday by the federal Treasury revealed that natural disasters in the first five months of 2025 led to a decline in economic activity worth 2.2 billion Australian dollars (1.4 billion U.S. dollars).
During this period, the east coast states of New South Wales and Queensland experienced widespread historic flooding. Cyclone Alfred also struck southeast Queensland in March, marking the first cyclone to hit the area in 50 years. Other regions of Australia were affected by severe storms, cyclones, and bushfires.
The Treasury report noted a decline in nominal retail trade in Queensland, with a fall of 0.3 percent in February and 0.4 percent in March. Separate data from the Australian Bureau of Statistics (ABS) in May indicated that household spending across Australia remained flat in the first quarter of the year and decreased by 0.2 percent in Queensland.
The Treasury’s findings were released in advance of the national accounts data for the first quarter of 2025, scheduled to be published by the ABS on Wednesday. Treasurer Jim Chalmers emphasized the importance of both human and economic impacts, noting that the country’s efforts to reduce inflation, unemployment, and national debt have positioned the government to better support disaster-affected communities.