Jamaica Counts the Cost of Melissa as the Recovery Bill Comes Due

The prime minister put hurricane damage near 55% of GDP as the June-quarter contraction eased, days before the Bank of Jamaica's next rate decision.

Jamaica is beginning to put numbers to the cost of Hurricane Melissa. At a ceremony marking a US$5 million European Union grant for national reconstruction, routed through the World Bank, Prime Minister Andrew Holness put the storm's damage at roughly 55% of gross domestic product, a figure that captures how heavily the hurricane fell on the island's economy.

Cabinet reported the June-quarter contraction easing to 2.9%, from 7.1% and then 4.1% in prior quarters, a sign the worst of the shock has passed even as the rebuilding bill mounts. The opposition finance spokesman, Julian Robinson, put new borrowing at J$30 billion against a revenue shortfall of J$28.7 billion; those are opposition figures and await official confirmation.

The fiscal reckoning lands three business days before the Bank of Jamaica's next rate decision on September 28. The central bank has held its policy rate at 5.50%, with August inflation at 7.9%, still above target. A recovery that needs cheap money and a central bank fighting prices are not easily reconciled, and Melissa has sharpened the tension.

Sources: the Jamaica Gleaner (September 23, 2026); Bank of Jamaica; and STATIN. Opposition borrowing figures are attributed and unconfirmed.