Finance
Australian Economy Struck by Wildfires, Setting Up Stimulus
- Economists see hit to GDP of between 0.2-0.4 percentage points
- Long-term damage to environment and reputation remain unknown
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Australia’s economy is likely to be further weighed down by wildfires that have scorched an area larger than the Republic of Ireland and could intensify in coming months with more hot, dry weather predicted.
Goldman Sachs Group Inc. sees immediate economic hits to private investment and farm production, with a drag on tourism deepening over coming months. This will be partly offset by a lift in fiscal spending -- including military deployment -- translating to a positive contribution from government consumption to GDP.