Cyclone Alfred Hits Australia with $1.2 Billion Economic Cost

The Australian government is bracing for an estimated A$1.2 billion economic hit due to Tropical Cyclone Alfred, which caused significant damage and disruption across Queensland and New South Wales. Treasurer Jim Chalmers indicated that the cyclone's impact would negatively affect the nation's GDP in the upcoming March quarter, with potential inflationary pressures stemming from crop losses. As the federal budget approaches, Chalmers emphasized the need for substantial funding to address recovery efforts, including a proposed $30 million for repairing infrastructure in affected tourism hotspots like the Gold Coast. The storm has already resulted in over 7,600 insurance claims, with damages expected to exceed $164 million. Chalmers will outline these economic repercussions in a speech at the Queensland Media Club, just days before the federal budget is released, which is expected to include a total of $13.5 billion for disaster recovery. The situation adds pressure to the government's budget as national elections draw near, amidst tight political competition.