Hurricane Melissa damage to Jamaica estimated at about US$6 billion – Holness

Preliminary figures have put the cost of damage to Jamaica by Hurricane Melissa has been estimated at about US$6 to US$7 billion.

This was disclosed by Prime Minister Dr Andrew Holness on Tuesday during a statement in Parliament, calling the situation a “major hit to our economy”.

Holness stated that the estimated cost is equivalent to about 28 to 32 per cent of last year’s gross domestic product (GDP).

He said he believes the damage estimate is conservative and a more accurate figure is expected by next week.

Holness added that an 8 to 13 per cent decline in GDP is expected as a result of the devastation caused by the Category 5 storm.

He indicated that the situation calls for a temporary suspension of Jamaica’s fiscal rules and that a rise in the debt-to-GDP ratio is anticipated.

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