31 May 2011
Last updated at 23:54 ET
Widespread flooding caused severe damage to resource rich states in Australia
Australia has reported its biggest quarterly fall in gross domestic product (GDP) in 20 years.
Its economy contracted by 1.2% in the first three months of the year, compared with the previous quarter, the latest government figures showed.
The government said flooding and cyclones in resource rich states of Queensland and Western Australia had a significant impact on growth.
Australia’s economy is heavily reliant on its resources sector.
“The economy has hit a temporary pothole courtesy of the natural disasters this year,” said Besa Deda of St George Bank.
‘Honeymoon period’
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The temporary factors have given us the negative, but I
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