Tropical Cyclone Alfred's approach raises concerns for Queensland's agricultural sector. The cyclone is hovering off the Queensland and northern New South Wales coasts, with expectations to make landfall either later Friday or early Saturday.
Business Editor Ross Greenwood from Sky News highlights the potential impact on the Lockyer Valley Region, west of Brisbane, known as "Australia's Salad Bowl." This region contributes approximately 40% of Queensland's fruit and vegetables and over 95% of Australia's winter crops. Greenwood warns, "This could have a big impact on even the national economy."
The cyclone's impact on agriculture could lead to inflationary pressures. "If all of a sudden Australia has a lack of fruit and vegetables off the back of this disaster, then that could spike up inflation (and) could certainly spike up the price of fruit and vegetables for the whole of Australia," Greenwood stated.
Australia's economy is recovering after post-pandemic inflation, with inflation rates recently dropping to the two-three percent target range. However, the cyclone could disrupt this progress. Greenwood notes, "This is the sort of thing that takes you backward for a period of time."
Insurance challenges are also anticipated. Greenwood mentions rising insurance premiums and difficulties for new homeowners in securing coverage. Marty Sadlier, an insurance expert, adds, "The insurance crisis hitting this country has been fermenting for some years now, yet it's only when events such as this cyclone hit that the consequences come into sharp focus."
Source: Sky News