By NAN Business Writer
News Americas, KINGSTON, Jamaica, Tues. Nov. 11, 2025: Jamaica Prime Minister Andrew Holness has revealed that the record-breaking storm caused damages equivalent to nearly one-third of Jamaica’s annual GDP.
Holness told Parliament recentkly that initial assessments show losses of between US$6 and $7 billion – or roughly 28% to 32% of Jamaica’s 2024 economic output -making Melissa the most destructive hurricane in the island’s history.
“This was not just another storm,” Holness declared. “Experts say Melissa pushed the physical limits of what’s possible in the Atlantic, fueled by record sea temperatures. Its force was so immense that seismographs hundreds of miles away registered its passage. Hurricane Melissa wasn’t only a tragedy – it was a warning.”
An aerial view shows damaged buildings in the aftermath of Hurricane Melissa, in Westmoreland, Jamaica, on October 31, 2025. At least 19 people in Jamaica have died as a result of Hurricane Melissa which devastated the island nation when it roared ashore this week, a government minister told news outlets late October 31. (Photo by RICARDO MAKYN/AFP via Getty Images)
Fiscal Shock and Recovery Plan
The Prime Minister warned that reconstruction costs will temporarily push up Jamaica’s debt-to-GDP ratio, forcing the government to invoke emergency fiscal provisions. He said the administration will seek support from regional partners, multilateral agencies, and private-sector investors to stabilize the economy.
Preliminary data suggests short-term economic output could shrink by 8% to 13%, a major setback for an economy already strained by Hurricane Beryl last year.
Holness said new measures would focus on climate-resilient rebuilding, including plans to bury sections of the national power grid, upgrade coastal defenses, and waive import taxes on critical relief items such as solar panels and Starlink satellite kits.
“Every repaired bridge, re-roofed home, and rebuilt road must be designed for the storms of tomorrow, not the storms of yesterday,” Holness said.
Regional Impact and Rising Costs of Climate Change
While Jamaica bore the brunt of Melissa’s impact, heavy rains also pummeled Haiti, flooding rivers and destroying nearly 12,000 homes. Haitian officials confirmed 25 deaths, including 10 children.
In Cuba, authorities reported no fatalities after large-scale evacuations near Santiago de Cuba, though they cited massive agricultural and infrastructure losses.
Regionally, AccuWeather estimates total damages from Hurricane Melissa at US $48–52 billion, while Verisk Analytics pegs insured losses in Jamaica alone between US $2.2 billion and $4.2 billion.
Caribbean Leaders Renew Climate Call
The scale of devastation has renewed calls across CARICOM for climate reparations and debt relief from high-emission nations. “This is what climate injustice looks like,” said one regional diplomat. “The Caribbean is paying the price for carbon emissions we didn’t create.”
Holness echoed the sentiment, pledging to champion a regional resilience framework that ties reconstruction to green financing and renewable energy transitions.
“Jamaica will rebuild stronger,” he said. “But the world must listen. Our survival depends on global action, not sympathy.”
Jamaica is set to receive a full $150 million payout under its World Bank backed catastrophe bond following the devastation caused by Hurricane Melissa – marking one of the largest single sovereign insurance redemptions in the Caribbean’s history.
The World Bank, (International Bank for Reconstruction and Development, IBRD AAA/Aaa) confirmed that the payout was automatically triggered after third-party analysis by AIR Worldwide Corporation determined that the hurricane met pre-agreed parametric thresholds based on the storm’s central pressure and path, as reported by the U.S. National Hurricane Center.
And In the wake of Hurricane Melissa’s devastating impact, the Caribbean Catastrophe Risk Insurance Facility, (CCRIF-SPC) has announced a record-breaking US$70.8 million payout to the Government of Jamaica — the largest single payout in the organization’s history.
The Cayman Islands-based Caribbean and Central America Parametric Insurance Facility said the funds will be disbursed within 14 days, pending final model verification, in line with CCRIF’s commitment to speed and transparency.
“This marks the largest single payout in CCRIF’s history and is a powerful demonstration of the organization’s parametric insurance model,” CCRIF said in a statement. This payout is Jamaica’s fourth from CCRIF, bringing the country’s total receipts to US$100.9 million since joining the facility in 2007. Previous payments included US$26.6 million following Hurricane Beryl in 2024 and earlier disbursements after Tropical Cyclones Zeta and Eta in 2020.
