Jamaica economy contracts 7.1 per cent in fourth quarter after hurricane impact
Jamaica’s economy contracted 7.1 per cent in the fourth quarter of 2025, official data showed on Monday, as Hurricane Melissa disrupted activity across key sectors.
The out-turn, reported by the Statistical Institute of Jamaica (Statin), reflected declines in both goods-producing and services industries, with widespread damage to infrastructure, agriculture and tourism weighing on output.
The contraction was slightly less severe than the 7.5 per cent decline previously estimated by the Planning Institute of Jamaica (PIOJ), but marked a sharp reversal from growth of 5.1 per cent recorded in the prior quarter.
Goods-producing industries fell 10.7 per cent, with agriculture, forestry and fishing down 17.7 per cent as the hurricane reduced crop yields, delayed planting and caused livestock losses. Mining and quarrying declined 37.5 per cent due to damage to equipment and lost production days, while manufacturing fell 8.1 per cent and construction slipped 2.5 per cent.
Services industries contracted 5.9 per cent, with tourism-related activity hit hardest. Accommodation and food services plunged 31.0 per cent following hotel closures and a sharp fall in visitor arrivals. Foreign national visits dropped to 367,927 from 645,575 a year earlier.
Transport and storage declined 7.5 per cent amid reduced airport activity, while information and communication fell 12.6 per cent as power outages and network disruptions affected operations. Electricity, water supply and waste management dropped 11.7 per cent due to damage to the grid.
Only financial and insurance activities, which grew 1.4 per cent, and public administration and defence, up 2.2 per cent, recorded expansion during the quarter.
On a quarter-on-quarter basis, the economy contracted 7.3 per cent compared with July to September, reflecting declines in both goods-producing and services industries.
Despite the fourth-quarter downturn, preliminary estimates indicated that the economy grew by 0.1 per cent for the full year 2025, supported by stronger performance earlier in the year.
