Economic Impact Of Bushfire On Australia

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:

ECONOMIC IMPACT OF BUSHFIRE ON AUSTRALIA1
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, the activity of the consumers in the surrounding areas of the bushfire is
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
investors are not investing in property, as well as the tourism business of 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