Hurricane Melissa’s Aftermath: A Financial Storm for Jamaica

Hurricane Melissa, the fiercest storm ever recorded in Jamaica, has wreaked havoc on the island's infrastructure and homes, leading to damage estimated at 28% to 32% of last year's gross domestic product, Prime Minister Andrew Holness announced on Tuesday.

Addressing lawmakers, Holness noted that the storm's financial impact could cause a short-term decline in economic output by 8% to 13%. These figures, he believes, represent a conservative assessment of the catastrophe.

In light of the severe damage, Holness declared that Jamaica's debt-to-GDP ratio is likely to rise, with potential strain on fiscal targets. As a response, the government plans to activate emergency measures to temporarily relax the country's fiscal rules.