LatinNews Daily - 21 January 2026

*The International Monetary Fund (IMF) has confirmed that its executive board has approved Jamaica’s request for emergency financial assistance of some US$415m under its Rapid Financing Instrument (RFI)’s large natural disaster window, to address the impact of destruction caused by Hurricane Melissa which hit Jamaica on 28 October 2025. According to an IMF report, the hurricane killed 45 people and left at least 90,000 displaced. Preliminary estimates point to reconstruction costs of US$8.8bn (41% of GDP), of which about half are expected to be borne by the public sector. According to the IMF, by early December, 78% of the electricity grid and 80% of telecommunication networks had been restored, while 95% of roadways were open. The IMF predicts that Jamaica’s economy will contract by 4.3% in FY2025/26, with output expected to return to its pre-hurricane level only in 2028. According to the same report, the shock from the hurricane has created an urgent external financing need of about 6.5% of GDP as export earnings have shrunk in line with the significant drop in tourist arrivals while relief, recovery and reconstruction efforts are expected to be import intensive. The IMF cites estimates that Jamaica’s current account balance will shift from a surplus of 1.0% to a deficit of 2.0% of GDP in FY2025/26 and a surplus of 0.1% to a deficit of 5.3% of GDP in FY2026/27.

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