Australia has just announced a huge 1.2% decline in GDP for the first quarter of 2011, following the extensive flooding and cylones that swept a large part of Western Australia and Queensland in late 2010.

This is the worst slump since 1991 and  because of the freak weather conditions, mining o0perations were suspended in many areas and the overall mining production figures, that contribute so much to Aussie income dropped a massive 6%.

This comes on top of higher fuel and food prices that have caused inflationary pressures across the globe.

 However, Australian treasurer, Wayne Swan sees this as a one off situation and forecasts a massive rebound in Q2