World Bank estimates Hurricane Melissa causes record $8.8 billion in damages in Jamaica

World Bank estimates Hurricane Melissa causes record $8.8 billion in damages in Jamaica
Banking & Financial Services
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Ajay Banga, President at World Bank Group | The World Bank

The World Bank and the Inter-American Development Bank (IDB) have estimated that Hurricane Melissa caused US$8.8 billion in physical damage to Jamaica, an amount equal to 41 percent of the country's 2024 gross domestic product. This makes Hurricane Melissa the most expensive hurricane in Jamaica's history.

The assessment was carried out using the Global Rapid Damage Estimation (GRADE) methodology, which analyzed damage across residential, non-residential, infrastructure, and agricultural sectors. The estimate does not include broader economic losses, which are expected to be even higher.

A more detailed evaluation of damages and economic losses by sector will follow as part of a collaboration between the World Bank, IDB, United Nations Economic Commission for Latin America and the Caribbean (ECLAC), and under the leadership of Jamaica’s Planning Institute.

Preliminary findings show that 41 percent of assessed damages were to residential buildings, 33 percent to infrastructure, 21 percent to non-residential buildings, and 5 percent to agriculture. While agriculture suffered less physical damage compared to other sectors, significant economic losses are anticipated for this area.

“Jamaica will soon be advancing into the reconstruction phase following the impact of Melissa,” said Susana Cordeiro Guerra, World Bank Vice President for Latin America and the Caribbean. “The country’s resilience, strong leadership, and collective determination will guide the recovery and help rebuild lives and restore opportunity. The World Bank stands firmly with the Government and people of Jamaica as they transition from response to reconstruction. We are ready to mobilize our full range of support in collaboration with other international development partners to help deliver a resilient and inclusive recovery.”

“The scale of damage caused by Hurricane Melissa demands a fast, coordinated, and evidence-based response,” said Anabel González, IDB Vice President for Countries and Regional Integration. “The IDB is fully committed to supporting the Government of Jamaica, beginning with a clear understanding of Hurricane Melissa’s impact, as the country moves from emergency response to reconstruction. Together with our partners, we will help Jamaica rebuild stronger, safer, and more resilient.”

Jamaica has developed a disaster risk financing system that allows it to respond using several financial tools. However, officials say that a disaster on this scale will require expanded efforts and partnerships. The World Bank and IDB are providing contingent financing as well as technical assistance—including mechanisms like GRADE—and long-term support for recovery coordination.

The GRADE methodology provides an independent rapid estimation of post-disaster physical damage by quantifying sector-specific impacts shortly after an event occurs.

Funding for Jamaica’s GRADE report came from both the Global Facility for Disaster Reduction and Recovery (GFDRR) and Japan’s Ministry of Finance through a World Bank program focused on mainstreaming disaster risk management in developing countries.

More information about World Bank activities in Latin America and the Caribbean can be found at https://www.worldbank.org/en/country/caribbean.