Friday, October 13, 2006

Worst drought for 100 years

Australia is in the grip of its worst drought in 100 years, Prime Minister John Howard said on Friday, adding that he sees it hurting the economy.

Australia, already one of the world’s driest continents, has been suffering from below-average rainfall for the past several years.

Unseasonably hot, dry winds and early wildfires swept across four southern and eastern states this week, evaporating any hopes that a late spring rainfall might salvage Australia’s failing crops.

“It’s the worst in a century,’’ Howard told the Australian Broadcasting Corp Friday. “I would expect this drought to leave a very big impression on the Australian pysche.’’

Howard said the drought would almost certainly slow Australia’s gross domestic product growth rate.

“It will affect GDP growth. Just how much remains to be seen because it depends on the extent to which our booming economy in other areas can offset it,’’ he told Melbourne’s 3AW radio station.

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