Hurricane Melissa Causes US$8.8B Damage in Jamaica, Worst in Nation’s History

The figures, released through the World Bank’s Global Rapid Damage Estimation (GRADE) methodology, highlight the enormous scale of destruction and underscore the urgency of a coordinated national and international recovery effort.

Jamaica is confronting the most devastating hurricane impact in its recorded history, with new estimates from the World Bank and the Inter-American Development Bank (IDB) placing physical damages from Hurricane Melissa at US$8.8 billion—equivalent to 41% of Jamaica’s 2024 GDP. The figures, released through the World Bank’s Global Rapid Damage Estimation (GRADE) methodology, highlight the enormous scale of destruction and underscore the urgency of a coordinated national and international recovery effort.

The GRADE assessment, carried out immediately after the storm’s passage, represents an initial quantification of physical damage across Jamaica’s residential, commercial, agricultural, and infrastructure sectors. Importantly, it does not include broader economic losses—such as business interruption, lost tourism revenue, or long-term productivity impacts—which are expected to be substantially higher.

A Devastating Breakdown of Damage Across Jamaica

Preliminary results show the storm’s impacts were widespread and multi-sectoral:

• 41% of assessed damage occurred in residential buildings, reflecting widespread destruction of homes and communities.

• 33% affected critical infrastructure, including transport networks, utilities, water systems, and public facilities.

• 21% affected non-residential buildings, such as commercial properties, schools, and public offices.

• 5% fell within the agriculture sector, including damage to crops, livestock, and farming infrastructure.

Although agriculture accounts for a smaller proportion of physical damage, the economic impact for the sector is expected to be severe. Jamaica’s rural communities and small-scale farmers—many already facing climate vulnerability—are likely to experience prolonged disruptions to livelihoods, food production, and income stability.

Toward a Coordinated National Reconstruction Effort

The GRADE findings form the foundation for a more detailed post-disaster needs assessment being developed collaboratively by the Government of Jamaica, the IDB, and the United Nations Economic Commission for Latin America and the Caribbean (ECLAC). This comprehensive assessment, led by the Planning Institute of Jamaica, will quantify not only physical damage but also social, economic, and environmental losses to guide reconstruction priorities.

World Bank Vice President for Latin America and the Caribbean, Susana Cordeiro Guerra, emphasised Jamaica’s resilience and the importance of rapid mobilization:

“Jamaica will soon be advancing into the reconstruction phase following the impact of Melissa. The country’s resilience, strong leadership, and collective determination will guide recovery and help restore opportunity.”

She affirmed the World Bank’s readiness to deliver its full suite of support—financial, technical, and operational—in partnership with Jamaica and other international agencies.

IDB Vice President for Countries and Regional Integration, Anabel González, echoed this commitment:

“The scale of damage caused by Hurricane Melissa demands a fast, coordinated, and evidence-based response. Together with our partners, we will help Jamaica rebuild stronger, safer, and more resilient.”

Jamaica’s Disaster Financing System: Strong, But Stretched

Jamaica has spent years strengthening its disaster risk financing architecture, enabling the country to draw on multiple instruments—such as contingency funds, parametric insurance, and emergency lending—to respond to natural hazards.

However, the sheer magnitude of Hurricane Melissa has stretched existing financial frameworks. The Government now requires scaled-up international partnerships, blended financing, and long-term investment to support reconstruction efforts that prioritise resilience, climate adaptation, and social protection.

The Role of the GRADE Methodology

The GRADE system is an independent, rapid analysis tool used by the World Bank to estimate the physical impacts of natural disasters. It provides:

• Immediate post-disaster quantification of damage

• A sector-by-sector breakdown to guide emergency response

• A basis for refining long-term recovery plans and reconstruction financing

For Jamaica, the GRADE report was funded by the Global Facility for Disaster Reduction and Recovery (GFDRR) and the Ministry of Finance of Japan, through the World Bank’s programme supporting disaster risk management in developing countries.

A Call for Resilient Recovery

Reconstruction following Hurricane Melissa will require a long-term, whole-of-government effort—supported by strong global partnerships—to rebuild homes, infrastructure, and livelihoods. It will also require integrating resilience into every stage of planning to ensure Jamaica is better protected from future climate-driven disasters.

The World Bank, IDB, and other development partners say they stand ready to assist Jamaica not only in rebuilding what was lost, but in transforming the country’s resilience and preparedness for the decades ahead.