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Jamaica faces massive economic impact from Hurricane Melissa
Jamaica is facing a prolonged recovery period following the impact of Category 5 Hurricane Melissa. The Inter-American Development Bank (IDB) estimates that the storm caused approximately $12.2 billion USD in material and economic damages, representing about 56.7% of Jamaica's GDP. The disaster has placed significant pressure on the nation's budget, contributing to higher-than-expected deficits and an increased debt-to-GDP ratio as the government prioritizes reconstruction.
Key sectors affected include housing, tourism, and agriculture. While the government under Prime Minister Andrew Holness remains on track to meet medium-term goals of reducing public debt to 60% of GDP, the IDB warns that economic recovery may remain modest due to the slow pace of fund disbursement to heavily impacted communities. The government has also postponed ambitious budget targets by two years to create fiscal space for recovery efforts.
In response to the crisis, Trinidad and Tobago is mobilizing support for Jamaica. Prime Minister Kamla Persad-Bissessar has pledged assistance including manpower, technical resources, emergency supplies, and foodstuffs. The Trinidad and Tobago government is coordinating through the Office of Disaster Preparedness and Management and the Defence Force to deliver aid, while also monitoring the welfare of its citizens currently in Jamaica.
Entities
Andrew Holness · Inter-American Development Bank · Jamaica · Kamla Persad-Bissessar · Trinidad and Tobago