Australia’s Economy Likely Shrank by Most in 20 Years on Floods

Australia’s economy probably shrank last quarter by the most in two decades as floods inundated coal mines and farmland, a contraction the central bank sees as temporary before growth rebounds in the second half of the year.

First-quarter gross domestic product fell 1.1 percent from the previous three months, the biggest drop since Australia’s last recession in 1991, according to the median of 22 estimates in a Bloomberg News survey. Prior to a report earlier today showing a reduced contribution to GDP from exports, the median was a 0.3 percent decline.