Hurricane Melissa: IMF and Jamaica's Resilience in the Face of Natural Disaster

The IMF is monitoring Jamaica and Haiti after Hurricane Melissa's devastation. Jamaica has buffers for immediate needs and has not sought IMF financial support. The storm caused damages equating to 28%-32% of Jamaica's GDP, with economic losses potentially exceeding the 2024 GDP. Private insured losses are estimated at $3.5 billion.

The International Monetary Fund (IMF) is keeping a close watch on the situation in Jamaica and Haiti following the destruction wrought by Hurricane Melissa. The storm, described as the strongest ever to hit Jamaica, resulted in substantial damage and loss of life, particularly affecting infrastructure and homes.

IMF spokeswoman Julie Kozack noted that Jamaica has not yet requested financial assistance from the organization. Kozack emphasized that Jamaica's robust fiscal policies have equipped it with financial buffers to manage immediate disaster-related expenses. Prime Minister Andrew Holness highlighted the severe impact of the storm, noting that damages were equivalent to up to 32% of the island's GDP.

Moody's RMS Event Response estimates the total insured losses to be between $3 billion and $5 billion, predominantly due to wind damage. The economic fallout from Hurricane Melissa poses a significant threat to Jamaica's GDP, potentially surpassing its entire 2024 economic output, underscoring the extensive damage beyond just property losses.

(With inputs from agencies.)