Australia might have to see a Staggering Cost after the moderation of Bushfires

The cost to the Australian economy of the shattering bushfire has already possibly beaten $2 billion – and is still mounting. Moreover, this vilest bushfires could push the economy into a recession ever since 1991, as per the recent analysis. Besides, intense bushfires is expected to drag down the country’s economy as the tourism along with the consumer sectors are mostly at a hit. And the continuous weak consumer spending can drive recession across Australia.

Furthermore, as per economists direct costs to the regions affected by fire due to lost tourism, agricultural as well as retail income has already gone between $1.1 billion to $1.9 billion this fiscal year. Additionally, the smog that has shrouded major cities regularly was probable of reducing economic output of Australia by almost $500 million plus that included lost productivity, expenditure and declining health of residents. In addition, there are almost 1,600 confirmed property losses reported in entire country until now.

There have already been hundreds of million insurance claims made as per the records of Insurance Council of Australia (ICA). Thus, till the time bushfires will finally moderate, the overall cost to Australia may perhaps be staggering. Furthermore, the wildfires will possibly wipe off nearly0.25 percent to 1 percent of the nation’s GDP growth this fiscal year, which might amount to somewhere amid $3 billion and $13 billion. Moreover, the year when the country has just recorded the growth of almost 0.4 percent this year, the economy cannot really afford such a drastic downfall right now.

It is very important for the Australian government to implement significant changes in their climate policies, as Australia is expected to be in the list of those countries that will have to face the severity of the climatic conditions. Already, country is fighting with its land burning in fire since past few months, which is the result of 3 years drought that has left countries bushland susceptible to fires. This has ultimately started pushing the country towards serious financial crisis as well as possibility of recession.