Climate-related disasters inflict disproportionate economic damage on Caribbean nations, with annual losses averaging 2.13% of GDP from 1980-2020, according to recent OECD/IDB analysis.
This vulnerability was starkly illustrated by Hurricane Melissa, which struck Jamaica this week as a Category 5 storm with 185 mph winds – the strongest in the island’s history.
Government officials reported widespread devastation, flooding, and power outages affecting over 530,000 residents (CNN, October 29, 2025).
Dominica faces the highest burden at 11.3% of GDP annually, followed by Grenada (3.9%) and Saint Vincent and the Grenadines (2.7%).
Even countries with relatively lower exposure, like Barbados (0.5%), experience losses that would be considered catastrophic in developed nations. For context, the Caribbean contributes just 0.23% of global greenhouse gas emissions.
The frequency of extreme weather events has surged 85% between 2001-2020 compared to 1980-2000, with 322 climate disasters affecting 24 million people over the four-decade period.
Haiti, Dominican Republic, and Jamaica alone accounted for 60% of regional climate hazard events.
Despite these challenges, Caribbean nations are pioneering innovative climate finance solutions, including hurricane clauses, blue bonds, and debt-for-nature swaps, that could serve as models for other climate-vulnerable regions, while building resilience for future generations.
Source: OECD/IDB Caribbean Development Dynamics 2025
