Australian bushfires will be a 'big drag' on growth, says economist

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Australian bushfires will be a 'big drag' on growth, says economist
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The bushfires across the states of Victoria and New South Wales threaten to slow down the Australian economy, said the chief economist at BetaShares Capital.

Australian Prime Minister Scott Morrison and his conservative government have faced much criticism for not doing enough to address the climate issues domestically and internationally. On Monday, the prime minister announced that his government will be committing $2 billion Australian dollars over two years to bushfire recovery, Reuters reported.

"Even before the fires, I thought they would cut another two times given the weakness of the economy," the economist said. "A cut in February is still very, very likely and then a cut within the next few months. Beyond that, what they've said is that they probably don't want to go beyond 0.25% which is very close to zero."

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