The Jamaican government says the preliminary estimate of the damage caused by Hurricane Melissa when it slammed into the country last Tuesday has been put at an estimated cost as high as US$7 billion.
Prime Minister Andrew Holness told Parliament on Tuesday that the figure is about 32 per cent of the country’s gross domestic product (GDP) for fiscal year 2024/2025 and that detailed damage assessments are still underway, even as he is providing the “very preliminary, high-level estimates only to illustrate the scale of the devastation”.
Holness told legislators that the early assessment is based on benchmarks from comparable regional disasters, physical damage to housing, commercial buildings, roads, electricity, water, and telecommunications infrastructure.
Holness said that the category 5 hurricane, blamed for at least 32 deaths, is not only a national tragedy, but a warning.
“The storm’s 13-foot surge on our western coastline and up to 30 inches of rain in the central highlands revealed the devastating power of a new climate reality. The era of a once-in-a-generation hurricane is over.
“It is clear that Hurricane Melissa will have a profound economic impact on our country. The storm struck the heart of Jamaica’s productive belt. It tore through our breadbasket parish of St Elizabeth; it disrupted our tourism corridor stretching from Westmoreland through St James and into Trelawny and St Ann; and it inflicted heavy damage on housing, community infrastructure, commercial operations and public utilities across multiple parishes.
“Thousands of households now face the loss of homes, crops, equipment, and small enterprises. This is not only a humanitarian crisis — it is a shock to livelihoods, incomes, and local economies,” Holness told legislators.
He told Parliament that the government anticipates a temporary slowdown in economic activity, particularly in the most affected parishes.
“Agricultural output will decline in the short term as farmers replant and livestock operations recover. The tourism sector, while resilient and working swiftly to reopen, will require targeted support to restore capacity and confidence.
“Small and medium-sized enterprises — especially those in retail, manufacturing, services, and the creative industries — have sustained significant losses and will need liquidity and recovery support to rebuild inventories, repair facilities, and restart operations.
“At the same time, supply chains for food, construction materials, and consumer goods are being actively restored, though some market disruptions may occur in the immediate weeks ahead. A very preliminary estimate suggests that short-term economic output could decline by eight to 13 per cent,” Prime Minister Holness said.
The prime minister said that this means that revenues will decline as economic activity slows, even as expenditure must increase to finance emergency relief, recovery, and reconstruction.
“This will place pressure on our fiscal targets,” he said.
Meanwhile, Prime Minister Holness said that the National Housing Trust (NHT) will grant an automatic six-month mortgage moratorium to homeowners in the parishes most severely affected by the passage of the storm.
He said that these parishes are St. Elizabeth, St. James, Manchester, St. Ann, Westmoreland, Hanover, and Trelawny and that all NHT mortgagers are insured under the Trust’s houseowners’ mortgage policy, which covers damage from hurricanes, storms, flood, fire, among others.
“The NHT has already mobilised its branches island-wide to help mortgagers prepare and process their insurance claims quickly and efficiently,” he said, adding that recognising that many families will need time to prioritise home repairs, “the NHT will grant an automatic six-month moratorium on mortgage payments for mortgagers in the worst-affected parishes.
“This measure will assist some 20,000 homeowners. For all other parishes, the NHT will continue to consider individual moratorium applications for those who have lost income or face special hardships,” Holness said.
The prime minister also announced that several parliamentarians will be allocated funds for trucked water to constituents affected by the storm.
He said the parliamentary representatives in Westmoreland, Hanover, St. Elizabeth, St. James, Manchester, and Trelawny will be allocated two million dollars (One Jamaica dollar=US$0.008 cents) under this measure as the parishes most severely affected by the weather system.
The government also announced that all shelters will remain open for as long as needed, equipped with food, water, and psychological support services. It said that the facilities are being managed by the Ministry of Labour and Social Security and the Ministry of Local Government and Community Development.
Meanwhile, the Jamaica Customs Agency (JCA) has suspended the import duty and General Consumption Tax (GCT) on several hurricane relief items until Friday, November 28, 2025.
CMC/af/ir/2025
KINGSTON, Jamaica, Nov 5, CMC –
