November 20, 2025
The World Bank, working alongside the Inter-American Development Bank (IDB), estimates that Hurricane Melissa caused approximately US$8.8 billion in physical damage to Jamaica. This figure is equivalent to 41 percent of the country’s 2024 GDP and represents the most costly hurricane in Jamaica’s recorded history. The estimate is based on the Global Rapid Damage Estimation (GRADE) assessment, which was conducted immediately after the storm. The assessment examined damage across residential, non-residential, infrastructure, and agricultural sectors, although it does not capture broader economic losses, which are anticipated to be even greater.
The findings from GRADE will serve as a foundation for a more detailed analysis of both physical damages and economic losses by sector. This expanded evaluation will be undertaken through collaboration with the IDB and the United Nations Economic Commission for Latin America and the Caribbean (ECLAC), led by the Planning Institute of Jamaica.
Preliminary results show that residential buildings accounted for 41 percent of the assessed damage. Infrastructure represented 33 percent, non-residential buildings accounted for 21 percent, and the agriculture sector accounted for 5 percent, including livestock and related infrastructure. Although the agriculture sector shows the smallest share of physical damage, it is expected to experience notable economic losses in the months ahead.
“Jamaica will soon be advancing into the reconstruction phase following the impact of Melissa,” said Susana Cordeiro Guerra, World Bank Vice President for Latin America and the Caribbean. “The country’s resilience, strong leadership, and collective determination will guide the recovery and help rebuild lives and restore opportunity. The World Bank stands firmly with the government and people of Jamaica as they transition from response to reconstruction. We are ready to mobilise our full range of support in collaboration with other international development partners to help deliver a resilient and inclusive recovery.”
Anabel González, IDB Vice President for Countries and Regional Integration, emphasised the urgency of the situation. “The scale of damage caused by Hurricane Melissa demands a fast, coordinated, and evidence-based response. The IDB is fully committed to supporting the government of Jamaica, beginning with a clear understanding of Hurricane Melissa’s impact, as the country moves from emergency response to reconstruction. Together with our partners, we will help Jamaica rebuild stronger, safer, and more resilient.”
Jamaica’s established disaster risk financing system has positioned the country to respond to a variety of shocks through different financial instruments. However, an event of this magnitude will require expanded and closely coordinated efforts. Both the World Bank and the IDB are supporting the government through contingent financing, technical assistance, and long-term recovery planning, including tools such as GRADE which help guide resilient reconstruction strategies.
The GRADE methodology offers an independent and rapid estimation of post-disaster physical damage, providing an early indication of the severity of a disaster on a sector-by-sector basis. The GRADE report for Jamaica was carried out and funded by the Global Facility for Disaster Reduction and Recovery and the Ministry of Finance of Japan, through the World Bank’s programme for mainstreaming disaster risk management in developing countries, in collaboration with the World Bank.
Source: (Caribbean News Global)
Disclaimer:
Analyst Certification – The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation (s) or view (s) expressed by that research analyst in this research report.
Company Disclosure – The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may affect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.