Holness Dismisses Claims of Jamaican Recession, Cites Economic Resilience

Prime Minister Andrew Holness has firmly denied claims that Jamaica is currently in a recession, asserting that while the country faces economic challenges, its economy remains strong and capable of rebounding.

“By all accounts, Jamaica is not in a recession,” Holness stated on Friday during a ceremony for the handing over of a two-bedroom house in Dobson, near Christiana. “We are very cognizant of the fact that there are challenges, but we are confident that the Jamaican economy is strong and will rebound. In the same way that we have rebounded after the pandemic, we will rebound from the impacts of Hurricane Beryl and Tropical Storm Raphael.”

His comments come in response to recent media reports suggesting that the country’s economy has entered a downturn. The Jamaica Observer recently published a front-page article titled “Sweeping Cuts: Spending Control in Tight 2025/26 Recession Budget,” highlighting the government’s decision to slash its annual budget by $126 billion while maintaining funding for key infrastructure projects and the upcoming general election.

Holness acknowledged that economic fluctuations are part of the natural business cycle and that external factors, such as severe weather events, can impact growth.

“A recession is a natural part of the economic cycle—sometimes the economy goes up, sometimes it goes down,” he explained. “There are all kinds of things that can cause the economy to decline, such as weather events, hurricanes, and floods that damage economic activity. Global issues beyond our control, like pandemics, wars, and rising commodity prices, can also have an impact.”

The prime minister pointed to the effects of Hurricane Beryl and Tropical Storm Raphael as key reasons why Jamaica’s economy has not shown growth over the last two quarters, particularly in the agricultural sector and infrastructure.

“We had Hurricane Beryl, which significantly impacted agriculture, followed by sustained heavy rains that damaged our road infrastructure. Then we had another weather event, Tropical Storm Raphael,” Holness said. “These events have affected our productive capacity, but that in itself does not create a recession.”

He emphasized that the government has been working to build a resilient economy capable of withstanding such shocks.

“We have been building an economy that is resilient—meaning when things hit us, we are able to absorb the impact and bounce back,” he stated.

Despite concerns over reduced government spending, Holness remains confident in the country’s economic trajectory, reiterating that Jamaica has overcome challenges before and will do so again.