Floods and cyclones slashed economic growth in the first quarter, leading to a fall of 1.2% in gross domestic product (GDP).

Treasurer Wayne Swan says the natural disasters reduced real GDP growth by 1.7 percentage points, mainly through lower coal and agricultural production.

“The impact of the natural disasters is most evident in the large falls in coal and iron ore exports, and the weakness in agricultural production and tourism exports,” he said.

Floods and cyclones are estimated to have cut the value of real production by around $12 billion, of which $6.7 billion occurred in the March quarter.

Major Queensland coal mines were flooded and damage to rail lines also disrupted mining and agricultural production. Mr Swan said WA’s Pilbara region lost iron ore sales due to bad weather.