April 1, 2026
Jamaica’s economic performance in 2025 reflected a period of solid expansion followed by a sharp contraction toward the end of the year, underscoring both underlying resilience and vulnerability to external shocks. According to Statistical Institute of Jamaica Director General Leesha Delatie-Budair, the economy grew by 5.1% in the July to September quarter, marking the strongest quarterly expansion for the year. This followed earlier gains of 1.1% in the first quarter and 1.7% in the second quarter, indicating a steady upward trajectory through the first nine months of 2025.
The update was delivered during STATIN’s quarterly press briefing at the Terra Nova All-Suite Hotel on March 31. Despite the positive momentum observed throughout most of the year, economic activity was significantly disrupted in the final quarter. The economy contracted by 7.1% in the October to December period, largely as a result of the devastating effects of Hurricane Melissa, which made landfall on October 28 and caused an estimated US$8.8 billion in damage.
The downturn was broad-based, affecting both goods-producing and services industries. Goods-producing sectors declined by 10.7%, driven primarily by a sharp 17.7% contraction in agriculture, forestry and fishing. Meanwhile, services industries fell by 5.9%, with most segments recording declines. The only areas that remained resilient were finance and insurance, along with public administration and defence.
Within the services sector, accommodation and food service activities experienced the most severe impact, contracting by 31%. This segment alone accounted for 42.4% of the overall decline in services, highlighting the extent to which tourism-related activities were disrupted. Additional contractions were recorded in electricity, water and waste management, which declined by 11.7%, as well as in wholesale and retail trade, repair of motor vehicles, and installation of machinery and equipment, which fell by 2.2%.
Overall, the data point to a year in which steady economic gains were ultimately offset by a significant climate-related shock, reinforcing the importance of resilience planning within Jamaica’s economic framework.
Source: (Caribbean National Weekly)
Disclaimer:
Analyst Certification – The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation (s) or view (s) expressed by that research analyst in this research report.
Company Disclosure – The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may affect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.
