<p>Australian crop yields could be 4 per cent below current levels by 2063, reducing the country's economic output by A$1.8 billion ($1.2 billion) a year, unless action is taken to mitigate the impact of climate change, Treasurer Jim Chalmers said on Tuesday.</p>.<p>Global warming is leading to hotter and more extreme weather in Australia, one of the world's largest exporters of agricultural products.</p>.<p>After torrential rainfall in 2022, record temperatures and dry conditions this year have sharply reduced Australia's projected wheat harvest.</p>.Monsoon rain on downward trend in state, finds study.<p>"The latest analysis out of Treasury tells us that disasters and a warming climate have big, economy wide effects," Chalmers told an agricultural conference in Queensland dedicated to drought.</p>.<p>"If further action isn't taken, Australian crop yields could be 4 per cent lower by 2063 – costing us about A$1.8 billion in GDP in today's dollars."</p>.<p>Chalmers said bushfires in 2019 and floods in 2022 had cost the Australian economy around A$1.5 billion each and the government was investing in decarbonisation, drought resilience and disaster recovery programmes.</p>.<p>"What was $335 million in Commonwealth spending on disaster recovery in 2017-18 has become around $2.5 billion in 2022-23," he said.</p>.<p>"The pressure of a changing climate and more frequent natural disasters is constant, cascading, and cumulative."</p>
<p>Australian crop yields could be 4 per cent below current levels by 2063, reducing the country's economic output by A$1.8 billion ($1.2 billion) a year, unless action is taken to mitigate the impact of climate change, Treasurer Jim Chalmers said on Tuesday.</p>.<p>Global warming is leading to hotter and more extreme weather in Australia, one of the world's largest exporters of agricultural products.</p>.<p>After torrential rainfall in 2022, record temperatures and dry conditions this year have sharply reduced Australia's projected wheat harvest.</p>.Monsoon rain on downward trend in state, finds study.<p>"The latest analysis out of Treasury tells us that disasters and a warming climate have big, economy wide effects," Chalmers told an agricultural conference in Queensland dedicated to drought.</p>.<p>"If further action isn't taken, Australian crop yields could be 4 per cent lower by 2063 – costing us about A$1.8 billion in GDP in today's dollars."</p>.<p>Chalmers said bushfires in 2019 and floods in 2022 had cost the Australian economy around A$1.5 billion each and the government was investing in decarbonisation, drought resilience and disaster recovery programmes.</p>.<p>"What was $335 million in Commonwealth spending on disaster recovery in 2017-18 has become around $2.5 billion in 2022-23," he said.</p>.<p>"The pressure of a changing climate and more frequent natural disasters is constant, cascading, and cumulative."</p>