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Running head: ECONOMIC IMPACT OF BUSHFIRE ON AUSTRALIA ECONOMIC IMPACT OF BUSHFIRE ON AUSTRALIA Name of the Student Name of the University Author Note Course ID:
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1ECONOMIC IMPACT OF BUSHFIRE ON AUSTRALIA Australian Bushfire affecting consumption and investment Australian bushfire has become a devastating factor for the entire economy. The huge volume of gasses emitted from the bushfires has limited the consumption of the consumers. Moreover,theactivityoftheconsumersinthesurroundingareasofthebushfireis continuously declining. The reason behind this fall and shift of residents from the area is the outbreak of the fire, which is affecting the health of the public. There is a shift in consumption from retail commodities to facemasks and respirators. Major apparel retailers complain about the fall in sales of clothes and other accessories because of the outbreak of the fire. Department chain Harris Scarf announced the closure of its 40 percent shops due to falling demand for its products (NewsComAu. 2020). Additionally, there is a continuous fall in consumer's confidence that is leading to a fall in consumption expenditure. Several economists anticipate a fall in the GDP growth of Australia between 0.25 percent to 1 percent by the start of 2020 (Thediplomat.com. 2020). Apart from a fall in retail demand and consumption, the investment in the country is about to fall. This is because certain major sectors of Australia are experiencing a fall in growth and revenue. This sectors includes tourism and property market. Tourism demand is continuously falling because of the unfavourable climate and extreme levels of harmful gasses in the atmosphere. In addition to this, there is a fall in construction near the bush fire areas because residents are not interested in buying and living in nearby areas. Therefore, the investorsarenot investinginproperty,aswellasthetourismbusinessof Australia (Mozo.com.au. 2020). This fall in investor's interest in the business is continuously reducing the growth of the business sector in Australia. The agriculture sector too is suffering from a fall in productivity due to extreme weather conditions and hot climatic situations. As a result, there is a drop in revenue of the farmers as well as a fall in the consumption of the residents
2ECONOMIC IMPACT OF BUSHFIRE ON AUSTRALIA of the economy. Therefore, there is a fall in the GDP of the economy, which provides evidence for the anticipated fall in economic growth.
3ECONOMIC IMPACT OF BUSHFIRE ON AUSTRALIA References Mozo.com.au. 2020.Bushfires expected to have major short-term impacts on property prices. [online] Availableat:https://mozo.com.au/home-loans/articles/bushfires-expected-to-have- major-short-term-impacts-on-property-prices [Accessed 2 Feb. 2020]. NewsComAu.2020.Aussieretailicon’sshockannouncement.[online]Availableat: https://www.news.com.au/finance/economy/australian-economy/where-theres-smoke-aussie- retail-icons-shock-announcement/news-story/f1ec897eb0ae05c4996c4a33d00bc709 [Accessed 2 Feb. 2020]. Thediplomat.com. 2020. Fensom, A.Up In Smoke: Australia’s Bushfires Darken Economic Outlook.[online]Availableat:https://thediplomat.com/2020/01/up-in-smoke-australias- bushfires-darken-economic-outlook/ [Accessed 2 Feb. 2020].
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