Natural Disasters Deal $2.2 Billion Blow to Australian Economy so Far This Year

Natural disasters hit retail and spending, with losses set to weigh on March quarter figures due out June 4.

A main chainsaws a collapsed tree in Redcliffe Brisbane, Australia, on March 9, 2025. Asanka Ratnayake/Getty Images

Australia’s economy has already taken a $2.2 billion hit in 2025 from a spate of natural disasters, including Cyclone Alfred and widespread flooding across New South Wales (NSW) and Queensland, according to fresh estimates from Treasury.

The losses reflect immediate declines in economic activity, particularly across retail and household spending, and are expected to weigh heavily on the March quarter figures due for release on June 4.