Jamaica’s economy contracted by 7.1 percent in the fourth quarter of 2025, according to data released Monday by the Statistical Institute of Jamaica, as the effects of Hurricane Melissa disrupted activity across major sectors.
The decline reflects a sharp downturn in both goods-producing and services industries, driven largely by widespread damage to infrastructure, agriculture, and tourism. While the contraction was slightly less severe than the 7.5 percent initially projected by the Planning Institute of Jamaica, it marked a significant reversal from the 5.1 percent growth recorded in the previous quarter.
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Goods-producing industries fell by 10.7 percent, with agriculture, forestry, and fishing declining 17.7 percent due to reduced crop yields, delayed planting, and livestock losses caused by the hurricane. Mining and quarrying dropped sharply by 37.5 percent, while manufacturing decreased 8.1 percent and construction fell 2.5 percent.
Services industries also recorded a contraction of 5.9 percent, with tourism-related sectors among the hardest hit. Accommodation and food services plunged 31.0 percent amid hotel closures and a sharp decline in visitor arrivals, which fell to 367,927 compared to 645,575 during the same period a year earlier.
Other sectors also experienced notable declines. Transport and storage fell 7.5 percent due to reduced airport activity, while information and communication dropped 12.6 percent as power outages and network disruptions affected operations. Electricity, water supply, and waste management declined 11.7 percent following damage to critical infrastructure.
Only a few sectors recorded growth during the period, including financial and insurance activities, which increased by 1.4 percent, and public administration and defense, which rose by 2.2 percent.
On a quarter-on-quarter basis, the economy contracted by 7.3 percent compared with the July to September period, reflecting continued weakness across key industries.
Despite the sharp fourth-quarter decline, preliminary estimates indicate that Jamaica’s economy grew marginally by 0.1 percent for the full year 2025, supported by a stronger performance earlier in the year.
