Floods and extreme weather have cost Australia’s economy $2.2 billion so far this year.
The Federal Treasury Department calculated the economic hit through measuring retail and household spending rates, along with the impact of shutting businesses and hours of lost work.
It analysed losses caused by severe flooding in central and northern NSW, and damage and flooding caused by ex-Tropical Cyclone Alfred across Queensland.
Disasters
Australia has experienced widespread flooding throughout the year.
Central NSW and the state’s Mid North Coast have been hit by severe flooding, including recent floods in the Hunter, Port Macquarie, and Coffs Harbour, killing five people.
South East Queensland was lashed by ex-Tropical Cyclone Alfred in early March, causing widespread property damage. Flooding in the aftermath hit central and northern Queensland.
Economic losses
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Economy-wide losses are a way of measuring the material impact of natural disasters.
The Federal Treasury has released figures showing natural disasters have caused a $2.2 billion economic loss since the start of 2025.
The department’s analysis focused on flooding in NSW and Queensland, as well as the aftermath of Cyclone Alfred in SE Queensland.
Parts of Australia are also affected by severe drought, including South Australia and western Victoria.
Retail spending fell by 0.3% in February in Queensland as the state braced for the onset of Alfred, followed by a 0.4% drop in March.
The figures have been released ahead of the official quarterly economic growth figures on Wednesday (known as the ‘National Accounts’). It will show Australia’s Gross Domestic Product (GDP), a measure of the value of goods and services.
Treasurer Jim Chalmers said economic losses from recent disasters will impact the National Accounts.
“The human impacts matter to us most, but the economic cost is very significant too,” Chalmers said.
