Drought, fire, flood, hail and the impact of the coronavirus have combined to create one of the most-damaging summers the economies of Australia and its trading partners has seen for some time.
As a result, ANZ Research has reviewed its individual state economic forecasts, with substantial downward revisions for gross state product growth in 2019-20, especially in New South Wales, Victoria and South Australia.
The east-coast economies are likely to feel the greatest impact due to being more exposed to the hiatus in tourism and international student arrivals. Much of weather-related downturn is expected to reverse with the recovery work.
Signs were already bad in the lead up to the Australian summer. In the three months to December, the latest ANZ Stateometer shows deterioration in labour markets pulled on growth in NSW, Queensland, Western Australia and SA. Not even improved housing conditions were enough of an offset, leading growth in nearly 60 per cent of the Australian economy to slow.
All states and territories, bar the Australian Capital Territory, grew at a below trend rate.