Tropical Cyclone Alfred's Economic Impact on Australia

Tropical Cyclone Alfred is expected to cost Australia about A$1.2 billion, impacting the GDP by reducing it by a quarter percentage point in the March quarter. The storm caused significant damage and has potentially increased food and construction costs, ahead of the national election.

The Australian treasury has reported an estimated cost of A$1.2 billion from the recent Tropical Cyclone Alfred, announced Treasurer Jim Chalmers. The cyclone made landfall north of Brisbane, causing flash flooding and power outages and affecting states like Queensland and New South Wales.

Chalmers indicated significant economic damages, which will be detailed in the upcoming budget report. Although he predicts a return to a budget deficit, he emphasizes that it will be notably smaller compared to previous figures. His government promotes responsible economic management as a key feature.

The cyclone's aftermath is anticipated to influence food inflation due to fruit and vegetable farm damage and add pressure on building costs. More than 53,000 claims for storm-related damages have been submitted. Chalmers may also address the potential economic impacts from U.S. tariffs, as per media sources.

(With inputs from agencies.)