Australia - Bushfires may reduce Q1 GDP by 0.1%

The deadly bushfires that are ravaging Australia are first and foremost a human tragedy. But there are economic effects to consider, too. We suspect that the impact on consumption and working hours will be negligible, while firefighters working longer hours may boost output. But the fires will reduce agricultural output, may curb construction activity due to unhealthy air quality and tourism may also take a hit. All told, we suspect that the bushfires will curb Q1 GDP by around 0.1%.