Natural disasters weigh on the Australian economy in 2023, says Treasurer Jim Chalmers

Natural catastrophes, according to Treasurer Jim Chalmers, would be one of the main threats affecting the Australian economy in 2023.

Flooding cost the Australian economy over 3.5 billion dollars, or a quarter of one percent of the GDP, in the fiscal year 2021–2022, fueling inflation.

Before visiting the state of New South Wales to assess the reconstruction efforts in the wake of the disastrous floods in 2022, Chalmers released that government analysis.

He forewarned that Australia’s catastrophe readiness would be covered in the May budget and that the economy had not yet fully recovered from the floods of the previous year.

‘In Australia, we’re always conscious that natural disasters have the ability to throw us off course, and we expect this uncertainty to be one of the key factors weighing on our economy in 2023,’ Chalmers told Bloomberg.

According to the Treasury analysis, flooding contributed to a more than 16 per cent increase in fruit and vegetable costs in the year, and prices are predicted to rise further.