JAMAICA’S economic recovery is facing a double challenge as the lingering effects of Hurricane Melissa combined with rising global oil prices puts further pressure on an already weak growth outlook, the Planning Institute of Jamaica (PIOJ) has warned.

The economy contracted by 5.9 per cent during the January-March quarter, largely due to Hurricane Melissa, which struck the island as a powerful Category 5 storm last October. Now, the ongoing conflict in the Middle East is adding to the strain, with rising energy costs threatening to slow the pace of recovery.

Highlighting Jamaica’s vulnerability to global shocks, PIOJ Director General Dr Wayne Henry, speaking at the institute’s quarterly briefing on Wednesday, said that rising oil and commodity prices are already affecting trade and output performance locally.