November 20, 2025

Climate disasters will send many countries into a debt spiral—but there's a way out

IntelME Verdict

Debt Vulnerability

TL;DR

Hurricane Melissa's $7 billion damage in Jamaica highlights climate disasters' threat to national debt, urging international financial support and systemic change for vulnerable nations.

Analysis

The $7 billion damage from Hurricane Melissa in Jamaica showcases how climate disasters can push nations into a debt spiral, diverting resources from sustainable development. This highlights the urgent need for international financial support and systemic changes to address vulnerabilities faced by small island developing states and mitigate climate-related fiscal risks.

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