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You are here: Home / cat / IDB & World Bank: Jamaica Faces Historic US$8.8 Billion Loss from Hurricane Melissa

IDB & World Bank: Jamaica Faces Historic US$8.8 Billion Loss from Hurricane Melissa

Dated: November 20, 2025

The World Bank, in coordination with the Inter-American Development Bank (IDB), has estimated that Hurricane Melissa caused physical damages in Jamaica totaling US$8.8 billion, equivalent to 41% of the country’s 2024 GDP, making it the costliest hurricane in the nation’s recorded history. The Global Rapid Damage Estimation (GRADE), conducted immediately after the hurricane, assessed damage across residential, non-residential, infrastructure, and agricultural sectors, though it does not include broader economic losses, which are expected to be even higher. The GRADE findings will guide a more detailed sector-by-sector evaluation in collaboration with the IDB, the United Nations Economic Commission for Latin America and the Caribbean (ECLAC), and the Planning Institute of Jamaica.

Preliminary results show that residential buildings suffered the most damage at 41%, followed by infrastructure at 33%, non-residential buildings at 21%, and agriculture, including livestock and related facilities, at 5%. Despite agriculture sustaining comparatively lower physical damage, the sector is expected to face substantial economic losses. World Bank Vice President for Latin America and the Caribbean, Susana Cordeiro Guerra, emphasized that Jamaica is moving into the reconstruction phase, noting that the country’s resilience, leadership, and collective determination will drive recovery efforts. She highlighted the World Bank’s commitment to mobilizing resources in coordination with other international partners to support a resilient and inclusive recovery.

IDB Vice President for Countries and Regional Integration, Anabel González, stressed the need for a fast, coordinated, and evidence-based response. She affirmed the IDB’s dedication to assisting the Government of Jamaica in understanding Hurricane Melissa’s impact and in rebuilding stronger, safer, and more resilient infrastructure. Jamaica’s existing disaster risk financing system enables the country to respond to various impacts, but a disaster of this scale requires expanded and well-coordinated support. The World Bank and IDB are providing contingent financing, technical assistance, and long-term support to ensure coordinated recovery and reconstruction efforts.

The GRADE methodology offers an independent and rapid assessment of post-disaster physical damage, providing initial sector-level estimates of disaster severity. The GRADE report for Jamaica was conducted with financial support from the Global Facility for Disaster Reduction and Recovery (GFDRR) and the Ministry of Finance of Japan, through the World Bank’s program for Mainstreaming Disaster Risk Management in Developing Countries, in collaboration with the World Bank. This assessment is intended to inform recovery strategies and strengthen Jamaica’s resilience against future disasters.

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