''Look at the size of the Queensland economy relative to Australia. At the moment a fair chunk of it has just stopped,'' Professor McKibbin said.Despite this devastation Prime Minister Gillard is unwilling to alter budget spending:
As estimates of the financial damage wrought by the Queensland floods climb, the Prime Minister has ruled out loosening the budget purse strings to cope with economic shock.
''We will bring the budget to surplus in 2012-13, and yes that will entail some tough choices,'' Julia Gillard said.Coal export are also being hit very hard with up to 75% of Queensland's coal production stopped -
''Our initial estimate is the floods could drive a 25 per cent fall in coking coal export volumes and around a 9 per cent fall in thermal coal export volumes in January,'' she said. ''This could see exports alone strip 0.5 percentage points from [gross domestic product] in the quarter.''The article gives the damage so far as:
Coal exports down 5 per cent.In the very near future we could be adding to this list:
Falls of up to 25 per cent predicted.
Projected cotton exports down 8 per cent.
Cotton, coal and ethanol prices rising.
Rebuilding to cost billions.
Uncapped disaster relief payments.
Total bill of up to $13 billion.
- Qld unemployment hits 10%
- House prices drop 25%
- Qld floods force Federal Government to drop NBN