Jamaica’s Economic Impact and Recovery Needs After Hurricane Melissa

November 05, 2025

Jamaican Prime Minister Andrew Holness announced on Tuesday that Hurricane Melissa, one of the most powerful storms in Jamaica’s recorded history, caused widespread damage to homes and critical infrastructure valued at roughly 28% to 32% of Jamaica’s last year’s gross domestic product.

Addressing the House of Representatives, Holness explained that the current cost estimate of $6 billion to $7 billion remains conservative, as full assessments are still underway. He also warned that the storm’s economic impact could reduce short-term national output by 8% to 13%.

Holness noted that these recovery costs will place considerable pressure on Jamaica’s debt-to-GDP ratio. As a result, the government will activate emergency fiscal measures to temporarily suspend the country’s usual budget rules.

The government had previously taken steps to prepare for a storm of this scale, including securing credit and insurance protections similar to those established during last year’s Hurricane Beryl. Holness said Jamaica is now seeking additional financial support from regional partners, international development agencies and private sector organizations.

“Experts describe Melissa as being close to the upper physical limit of what can form in the Atlantic Ocean, driven by record sea temperatures,” Holness said. “Its force was so great that seismographs hundreds of miles away detected its movement. Hurricane Melissa was not only a tragedy. It was a warning.”

Scientists have repeatedly linked rapidly intensifying storms to greenhouse gas emissions that warm the ocean surface. Caribbean leaders have continued to advocate for climate financing, including aid and debt relief, from wealthier nations with higher emissions.

Holness emphasized that rebuilding must focus on long-term resilience. Plans include relocating parts of the electrical grid underground and waiving import taxes on certain relief items such as solar panels and Starlink kits.

“Every repaired bridge, re-roofed home and rebuilt road must be designed for the storms of tomorrow, not the storms of yesterday,” he said.

Rising Toll Across the Region

By Tuesday, the confirmed death toll reached 75 across the region. Haiti reported 43 deaths and 13 missing, in addition to 32 deaths in Jamaica. Although Haiti did not receive a direct landfall, days of heavy rain caused widespread flooding. One Haitian community reported 25 deaths, including 10 children. Nearly 12,000 homes were flooded, major roadways were cut off and access to drinking water was disrupted.

Both Jamaica and Haiti expect the toll to rise as more isolated communities become reachable. Holness noted that more than 30 Jamaican communities likely remain cut off due to collapsed bridges and damaged roadways. Recovery efforts are also challenged by shortages of helicopters, social workers, medical personnel and engineers. Holness said this highlights the need for proactive disaster planning.

In Cuba, authorities evacuated hundreds of thousands of people before the storm made landfall near Santiago. Although no deaths were reported, damage to homes, agriculture and infrastructure was extensive.

Regional damage from Hurricane Melissa is estimated at $48 billion to $52 billion, according to AccuWeather. The data analytics firm Verisk estimates insured losses in Jamaica alone at $2.2 billion to $4.2 billion.

Source: (Reuters)

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2025-11-05T11:31:42-05:00