The International Monetary Fund (IMF) is closely monitoring the aftermath of Hurricane Melissa, which caused widespread devastation across the Caribbean, particularly in Jamaica and Haiti.
On Thursday, IMF spokeswoman Julie Kozack confirmed that the global lender is ready to assist both countries, which were the hardest hit by the powerful storm. However, Jamaica has not yet sought financial support from the IMF, as the country is equipped with financial buffers to manage immediate disaster-related needs.
Jamaica’s Resilience Amid Disaster
According to Kozack, the IMF’s preliminary assessment of the situation in Jamaica, based on discussions with local authorities and the IMF's extensive knowledge of the country, suggests that Jamaica is in a strong fiscal position.
The country’s robust policy framework, strong fiscal and external balance, and a combination of domestic and external financial instruments have enabled Jamaica to build up the necessary buffers to finance immediate disaster-related expenses.
“Jamaica has the buffers to finance the immediate disaster-related spending needs,” Kozack said, emphasizing the country’s resilience in the face of such severe challenges.
Despite the significant damage caused by Hurricane Melissa, which is the strongest storm ever to hit Jamaica, the IMF believes the country is well-positioned to manage its recovery without immediate external financial assistance.
Devastation from Hurricane Melissa
Prime Minister Andrew Holness of Jamaica provided a somber update on the damage caused by Hurricane Melissa.
He reported that the storm, which killed 75 people — including 43 in Haiti and 32 in Jamaica — has caused damages to homes, key infrastructure, and businesses.
Early estimates place the total damage at approximately 28% to 32% of the country’s gross domestic product (GDP) for the previous year, which equates to around $6 billion to $7 billion in losses.
Holness acknowledged that this damage estimate could still prove conservative, given that it is based on preliminary assessments. The country could face a decline in short-term economic output by as much as 8% to 13% as a result of the destruction caused by the storm.
Private Market Losses and Moody’s Estimate
Moody’s RMS Event Response has estimated that private market insured losses from Hurricane Melissa will total between $3 billion and $5 billion. The best estimate of insured losses stands at $3.5 billion, primarily due to wind damage in Jamaica.
The storm's toll on Jamaica is expected to surpass the country’s projected 2024 GDP of approximately $20 billion. The IMF and other analysts expect the economic impact to go beyond just property damage, with business interruptions affecting multiple sectors including residential, commercial, industrial, and automobile industries.
Haiti Faces Grave Economic Challenges
Haiti, which was also severely impacted by the hurricane, is facing its own set of challenges in terms of recovery. The IMF has indicated its readiness to assist Haiti, but the focus for both countries remains on their immediate needs, with international support likely to be critical in the longer term for economic recovery and rebuilding efforts.
The devastating impact of Hurricane Melissa on Jamaica and Haiti underscores the vulnerability of Caribbean nations to natural disasters. While Jamaica’s financial preparedness has provided a buffer for the country’s immediate recovery, the long-term economic and social effects will likely continue to unfold in the months and years ahead. As the IMF stands ready to offer assistance, both nations will need to focus on rebuilding efforts, with a particular emphasis on restoring key infrastructure and addressing the economic losses in affected sectors.
As Jamaica begins its recovery, it will be essential for the country to maintain its strong fiscal and financial position while working closely with international partners and organizations like the IMF to ensure that the full scope of recovery efforts is supported.
Tensions escalated at Cheikh Anta Diop University in Senegal’s capital as students clashed with security forces demanding stipends and financial aid...
A man fatally stabbed two teenagers and seriously injured a third before falling from a motel window to his death in Changwon, South Gyeongsang Provin...
The Kremlin has confirmed that President Vladimir Putin accepted certain proposals from the United States on ending the war in Ukraine while rejecting...
Guinea-Bissau’s electoral commission announced it cannot complete the November 23 presidential election after armed individuals stormed its offices,...
The death toll from catastrophic floods and landslides across South and Southeast Asia has climbed to over 1,200, with more than 800 people still miss...
Tensions escalated at Cheikh Anta Diop University in Senegal’s capital as students clashed with security forces demanding stipends and financial aid amid the country’s deepening economic crisis.
A man fatally stabbed two teenagers and seriously injured a third before falling from a motel window to his death in Changwon, South Gyeongsang Province, local authorities reported.
The Kremlin has confirmed that President Vladimir Putin accepted certain proposals from the United States on ending the war in Ukraine while rejecting others, and indicated that Russia is ready to continue negotiations until an agreement is reached.
Guinea-Bissau’s electoral commission announced it cannot complete the November 23 presidential election after armed individuals stormed its offices, seized ballots and vote tallies, and destroyed servers holding election data.
A four-part docuseries executive produced by Curtis '50 cent' Jackson and directed by Alexandria Stapleton on Netflix is at the centre of controversy online.
Russia has claimed a decisive breakthrough in the nearly four-year war, with the Kremlin announcing the total capture of the key logistics hub of Pokrovsk just hours before United States mediators were due to arrive in Moscow.
Chinese scientists have unveiled a new gene-editing therapy that they say could lead to a functional cure for HIV, making it one of the most promising developments in decades of global research.
Uzbekistan has reopened its border with Afghanistan for the first time since 2021, the country’s Chamber of Commerce and Industry announced on Tuesday.
Belgian police have raided the EU’s diplomatic service and the College of Europe as part of a corruption probe into an EU-funded training academy for diplomats, detaining three suspects and searching multiple premises, according to Politico.
Ukrainian President Volodymyr Zelenskyy has announced that his country is preparing meetings in the United States with representatives of President Donald Trump, as diplomatic efforts continue to secure a dignified peace and reinforce pressure on Russia.
Vilnius Airport in Lithuania suspended operations on Wednesday after suspected balloons were spotted in its airspace, marking the latest in a series of similar incidents near the Belarus border.
Mexican President Claudia Sheinbaum will travel to Washington on Friday to participate in the 2026 World Cup draw, joining U.S. President Donald Trump and Canadian Prime Minister Mark Carney for the ceremonial event.
Tensions escalated at Cheikh Anta Diop University in Senegal’s capital as students clashed with security forces demanding stipends and financial aid amid the country’s deepening economic crisis.
A man fatally stabbed two teenagers and seriously injured a third before falling from a motel window to his death in Changwon, South Gyeongsang Province, local authorities reported.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment