Australia is the driest inhabited continent on Earth and among the most drought-exposed nations globally. The OECD’s 2025 Global Drought Outlook found that the average drought today carries economic impacts up to six times greater than in 2000, with costs expected to rise by at least 35% by 2035. Australia is listed among the most severely affected countries.

The cycle of drought is inevitable, though inconsistent in onset, duration, geography, and intensity. Individual droughts have reduced national GDP by more than one per cent, while local economies can contract by as much as 15 per cent. Public funds dedicated to addressing drought exceed $15 billion. The economic impact must be considered alongside equally significant social, environmental, and institutional impacts related to mental health, social cohesion, ecosystem services, community infrastructure, and vulnerable populations.