A Category 4 system that struck Queensland in late March has shaved some $2 billion from the state’s economic growth - the outlook for which remains subdued, budget papers show.
Cyclone Debbie created a $2 billion hole in the $300 billion economy’s revenue, dampening growth for 2016-17 which otherwise stood to benefit from record low interest rates and a surge in household wealth.
Treasurer Curtis Pitt said the storm had slashed 0.75% from economic growth both for this financial year and the next, The Australian reported.
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In a parliament hearing, Pitt said: “Severe Tropical Cyclone Debbie has hit our economy hard slowing growth to now be in line with the rest of the nation,” The Morning Bulletin reported.
“Coal, sugar, cattle and other exports have been impacted as well as localised tourism,” he added.
The budget showed that the cyclone caused major losses to coal exports due to damaged rail lines. These closures, including the Goonyella, Blackwater, Moura, and Newlands networks, resulted in an estimated loss of 10 million export tonnes in the June quarter of 2017, the report said.
Meanwhile, Debbie is estimated to have dealt the tourism sector a $150 million blow, with key resorts, including Daydream and Hayman Islands, not reopening until 2018.
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