Landmark study reveals scale of disaster impacts and strengths across Northern Rivers economy
The NSW Reconstruction Authority (RA) has released a landmark report revealing the scale of economic disruption experienced by the Northern Rivers following multiple natural disasters over the past six years.
Editor's note: A copy of the report can be downloaded via https://www.nsw.gov.au/departments-and-agencies/nsw-reconstruction-authority/our-work/northern-rivers/economic-recovery/northern-rivers-economic-profile-and-natural-hazard-impacts
The Northern Rivers Economic Profile and Natural Hazard Impacts Report examines the cumulative impact of the 2019–20 bushfires, the 2022 floods and ex Tropical Cyclone Alfred in 2025 on the region.
This landmark study provides the most comprehensive assessment to date of how the disaster has affected the region’s people, infrastructure and future development. Insights from this report will directly inform the Northern Rivers Disaster Adaptation Plan, the first region-wide plan to reduce disaster risk.
The report found that the Northern Rivers Gross Regional Product (GRP) – the value of all goods and services produced for the Northern Rivers – took a cumulative $4 billion hit from these disasters over the past six years. This total loss represents 2.9% of the economic activity that would have otherwise been expected over the period.
The report also estimates that these disasters resulted in $6.9 billion of socio-economic costs.
These costs include economic losses to businesses, homeowners and public assets, as well indirect economic impacts from lost productivity and supply chain disruption. Plus, the social costs to health and mental well-being. And finally, the money spent by all levels of government in emergency response, recovery and government support.
Encouragingly, despite these devastating economic impacts, the report found the region’s GRP still grew 17.9% in real terms since 2019, reaching $22.8 billion in 2024, showing strong underlying economic fundamentals.
This growth matches that of Regional NSW at 18% (for the same period), which has not experienced the same range of natural hazard disaster as the Northern Rivers.
Key industries like agriculture and tourism were highly exposed to the impacts of natural hazards. While businesses identified the vulnerability of the region’s infrastructure—power, transport, and telecommunications— as a major concern. Other challenges include high insurance costs, housing shortages, labour stress, and the cumulative impact of disasters on business viability and wellbeing.
Report findings will help identify priority risks, shape targeted risk reduction actions and support the development of long-term adaptation pathways to deliver the greatest social and economic benefit for the region.
As this next stage of adaptation and recovery planning begins the RA is committed to working closely with local communities. Their insights and experience will be central to shaping an adaptation plan that reflects local priorities, shapes targeted risk reduction actions, strengthens resilience, and supports long-term regional renewal.
To find out more about the Northern Rivers Adaptation Plan go to https://www.nsw.gov.au/departments-and-agencies/nsw-reconstruction-authority/our-work/disaster-adaptation-plans/northern-rivers-dap
Minister for Recovery Janelle Saffin said:
“We all know that economies take a hit every time disaster strikes. Now, for the first time in Australia, we have measured the true size of the hit to the Northern Rivers economy across three disasters.
“This landmark report is a call to action for us all.
“Our economy remains strong despite the setbacks, but it has the potential to be so much stronger, and if we all act together now on preparation, adaptation and mitigation for the next disaster, our economy and community will thrive.”
NSW Reconstruction Authority A/Head, Adaptation, Mitigation & Reconstruction Kristie Clarke said:
“We need to collaborate, innovate and work together, across industries and businesses, to champion resilience, invest in adaptation and shape an economically strong and disaster resilient Northern Rivers.
“Encouragingly, this report highlights that many businesses in the Northern Rivers are already taking the necessary steps towards that goal.”