Cyclone Alfred's Economic Impact: A $1.2 Billion Blow to Australia's GDP

Tropical Cyclone Alfred has incurred estimated costs of A$1.2 billion, impacting Australia's GDP by 0.25% in Q1. It caused floods, power outages, and potential inflation due to farm damage. Treasurer Jim Chalmers anticipates further budget pressures amid political challenges as elections approach.

The Australian government faces an estimated A$1.2 billion financial hit due to damages from Tropical Cyclone Alfred, with Treasury indicating a negative impact on the nation's GDP in the March quarter. The cyclone, which landed north of Brisbane, led to flash floods and widespread power shortages across Queensland and New South Wales.

According to excerpts from a speech by Treasurer Jim Chalmers, the storm's economic toll is yet to be fully calculated, but it is expected to affect Australia's quarterly growth. Chalmers is set to address the Queensland Media Club, stating that the disaster has added significant budgetary pressure as the country heads towards national elections.

Beyond the immediate damage, Chalmers warns of possible inflationary impacts due to crop losses. Meanwhile, political dynamics remain tense, with polls showing a close contest between his Labor government and the opposition. Furthermore, the Treasurer is likely to discuss the economic repercussions of U.S. tariffs on steel and aluminium.

(With inputs from agencies.)