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Reading: Hurricane Melissa Blasts Jamaica’s Financial system | Economics
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Michigan Post > Blog > Economics > Hurricane Melissa Blasts Jamaica’s Financial system | Economics
Economics

Hurricane Melissa Blasts Jamaica’s Financial system | Economics

By Editorial Board Published November 7, 2025 3 Min Read
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Hurricane Melissa Blasts Jamaica’s Financial system | Economics

 

Hurricane Melissa reached most Class 5 power when it made landfall in Jamaica. The sudden onslaught of destruction can’t be described except you’ve seen the apocalyptic land of a coastal city that has acquired a direct hit from a hurricane. The injury from Melissa is unknown, however preliminary calculations counsel it could possibly be one-third of the nation’s GDP.

Jamaican Prime Minister Andrew Holness mentioned the injury could possibly be as much as 32% of final yr’s GDP. The $7 billion in injury is a conservative estimate. “Experts describe Melissa to be on the very edge of what is physically possible in the Atlantic Ocean, a storm powered by record sea temperatures,” he mentioned. “Its force was so immense that seismographs hundreds of miles away registered its passage.” Holness mentioned that the nation’s infrastructure should be reformed to guard it from future climate occasions.

Financial output is more likely to decline by a minimal of 13% because of the injury because the nation closely depends on tourism. Tourism immediately accounts for 9.5% to 10.5% of Jamaica’s GDP, however accounts for 30% when factoring within the oblique results. Final yr, the nation skilled record-breaking income after producing $4.3 billion. The federal government had anticipated it will surpass final yr’s document and safe $5 billion from tourism this yr.

Agriculture is anticipated to be disrupted because of the hurricane, a sector that contributes 17.4% to Jamaica’s GDP. The loss can be extra important for the nation as home manufacturing accounts for a good portion of the nation’s recent produce provide.

The US is offering $12 million in pressing support to Jamaica as half of a bigger $24 million bundle for the Caribbean. Jamaica closely depends on the US for imports, with the overall proportion of products from the US reaching as much as 60% yearly. It’s a small island with a small economic system. The nation was on the up earlier than the hurricane, and it’ll take time to recuperate. Even the Tampa Bay space in Florida continues to be engaged on repairs practically a yr after Hurricane Helene and Milton hit back-to-back. My condolences are with the Jamaican individuals recovering from this tragedy.

TAGGED:ArmstrongblastsEconomicsEconomyHurricaneJamaicasMelissa
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