Sydney (AFP) Feb 15, 2011
Australia's record floods will shear one percentage point off growth in the March quarter, the central bank said Tuesday, with preliminary estimates showing a 15 percent drop in coal output.
The Reserve Bank of Australia said last month's inundation of a huge area of mining, farming and tourism state Queensland would have "significant short-term effects on output and prices".
"The biggest effect on GDP was likely to arise from swings in coal production, with many Queensland mines severely affected by wet weather since December," the bank said in the minutes to its latest interest rate meeting, published Tuesday.
"Preliminary estimates suggested that national coal production would be around 15 percent lower over the December and March quarters than would otherwise have been the case."
The bank, which held interest rates steady at 4.75 percent this month, said the "cumulative effect of lost production... from the floods would result in the level of GDP being around one percentage point lower in the March quarter".
It would bounce back strongly as the recovery ramped up to slightly above pre-flood forecasts by the June quarter, the RBA said, with medium-term prospects "largely the same as they had been prior to the floods".
Treasurer Wayne Swan has flagged a 0.5 percentage point drop in growth for the current fiscal year due to the floods, which killed 35 people and brought the nation's third-largest city, Brisbane, to a standstill.
Swan warned he "couldn't rule out" negative growth for the March quarter, which would be the first contraction for Australia's mining-powered economy since the global financial crisis.
The coal industry, which flooding virtually shut down in Queensland last month, stood to lose about Aus$5 billion (US$5.02 billion) in exports from the crisis, while agriculture could take a Aus$2 billion hit, Swan said.
The floods were followed by a top-level cyclone which Treasury estimates wiped out Aus$700 million in rural production, Aus$200 million in coal exports and Aus$100 million in tourism activity.
Australia's economy grew a worse-than-expected 0.2 percent quarter on quarter in the three months to the end of September, the most recent available figure, which was the slowest since the depths of the financial crisis.
Share This Article With Planet Earth
Bringing Order To A World Of Disasters
A world of storm and tempest
When the Earth Quakes
Sydney (AFP) Jan 21, 2011
Australian Prime Minister Julia Gillard Friday raised the prospect of a one-off tax to pay for rebuilding after epic floods, as rising waters prompted more evacuations in the southeast. Crops, roads and railway lines were washed away and thousands of homes destroyed by vast floods that swamped Queensland state this month in what the government has said could be the nation's most costly natur ... read more
Haiti candidates press for more quake aid|
Australia floods to cut growth: bank
Australia flags taxpayer levy for floods
Lucky crash escape for Honduran ministers
Apple unveils digital media subscription service
Kaspersky tips Android to dominate mobile
LED Products Billed As Eco-Friendly Contain Toxic Metals, Study Finds
How Much Information Is There In The World?
Kenya's Fisheries Management Promotes Species That Grow Larger And Live Longer
23 fishermen missing in Russia: report
Thailand closes dive spots due to reef damage
China earmarks $303 bn for safe water: report
Polar Bear Births Could Plummet With Climate Change
Volcanic vents found in Antarctic waters
VIMS Team Glides Into Polar Research
Researchers Map Out Ice Sheets Shrinking During Ice Age
Rights group opposes China bear-bile listing
China says drought won't affect world food prices
Walker's World: The new Egypt needs food
Floods disrupt Sri Lanka's rice production
Cyclone Bingiza kills five in Madagascar
Cyclone Bingiza hits Madagascar
Sri Lanka flood damage $600 mln
Powerful quake rocks Chile year after disaster
Somalia: Jihadists, regime eye big pushes
South Sudan: Born under a bad sign?
Tunisian army patrols ports to stop migrant exodus
China FM urges West to lift sanctions on Zimbabwe
Revisited Human-Worm Relationships Shed Light On Brain Evolution
On Their Own Two Feet
Ancient Teeth Raise New Questions About The Origins Of Modern Man
Mathematical Model Explains How Complex Societies Emerge And Collapse
|The content herein, unless otherwise known to be public domain, are Copyright 1995-2010 - SpaceDaily. AFP and UPI Wire Stories are copyright Agence France-Presse and United Press International. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by SpaceDaily on any Web page published or hosted by SpaceDaily. Privacy Statement|