It will take the Jamaican economy at least ten years to recover from the damage wrought by Hurricane Melissa – Donovan Lewis
/ Our Today
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Category 5 Hurricane Melissa landed in Jamaica on October 28, leaving behind physical and economic devastation.
The World Bank, in coordination with the Inter-American Development Bank, estimates that it could cost the country over US$8.8 billion, 41 per cent of its GDP.
Funding has flooded into Jamaica from international entities that want to see the country recover quickly.
The Government has mobilised recovery efforts and is keen to spur economic activity, particularly in the western end of the country.
According to Reuters, the Jamaican Government has only” $500 million, of which it can cover with climate preparation reserves stockpiled to deal with disasters.”
Jamaica is appealing to the international community for assistance.
“We don’t come as mendicants. We come as victims of the actions of others,” said Jamaica’s Minister of Water, Environment and Climate Change, Matthew Samuda, at COP30 recently held in Brazil.
Jamaica has made great efforts to reduce its debt obligations, seeing its debt-to-GDP ratio fall to 68 per cent and has exhibited disciplined fiscal management.
Hurricane Melissa has upended that good work, with the debt-to-GDP ratio expected to climb to 120 per cent in the short term.
Inflation and interest rates are expected to climb as the economy contracts.
Prime Minister Andrew Holness said: “ I have great confidence that we will be able to stage the most phenomenal reconstruction of our economy. The truth is this was really a great disaster that has affected Jamaica but we are going to use this as an opportunity for growth inducement, an opportunity to build resilience and an opportunity to put Jamaica on a firm footing.”
Speaking at the St George’s College series ‘Pioneers of Tomorrow: A Knight’s Dialogue’, guest speaker Donovan Lewis, who is the founder and chairman of the Ideal Group of Companies and is regarded as the Caribbean’s most successful investor, said it will take Jamaica at least a decade to recover. He added that the rehabilitation efforts and getting the economy going cannot be accomplished in quick order.
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