CANBERRA (Reuters) - Devastating Australian floods have caused at least A$5 billion in damage to the mining and tourism state of Queensland and will knock about 1.75 percent from the state's economic growth, Queensland Treasurer Andrew Fraser said on Friday.
"We were looking to have a figure of around 3 percent (growth) forecast for this financial year, but the floods will now swamp that with growth now expected to be 1.25 percent. This is going to be a wild economic ride," Fraser told reporters.
Prime Minister Julia Gillard on Thursday announced a temporary tax rise and budget cuts to cover a national floods bill of around A$5.6 billion. The floods also hit the states of New South Wales and Victoria, though Queensland was hardest hit.
Economists have predicted the national damage bill from the floods to top A$10 billion, with recovery costs to be shared among national and state governments, insurers and companies.
(Reporting by James Grubel)
