Cuba reports economic growth of 10.9% in first quarter of the year

Cuba recorded growth of 10.9 percent in the first quarter of this year compared to the same period in 2021, Cuban Deputy Prime Minister and Economy Minister Alejandro Gil said Thursday.

“It is a great rate, but it contrasts with the first quarter of 2021 in which we were practically paralyzed,” the senior official said during his speech to the National Assembly of People’s Power (unicameral parliament).

The minister announced that as part of the measures to revive the economy, the Cuban government would establish a foreign exchange market for the population, allow foreign investment in the private sector and make import of several products such as various goods, computers, cell phones, and tires more flexible on a non-commercial basis for individuals.

“The goal is to restore the level of activity in view of 2019, and if we compare, we are still about 7 percent below what we achieved in 2019,” he said.

Gil pointed out that Cuba is sticking to its projections of achieving growth of around 4 percent by the end of 2022, describing the energy situation in the country as “complex” that slows down the functioning of the economy.

He further reported that foreign exchange earnings for the country’s economy amounted to US$2.521 billion in the first half of 2022, warning against overspending more than 50 percent on food and fuel purchases.

“There is no way to fight inflation without addressing the budget deficit,” he stressed while pointing to the urgency of finding new export markets for Cuban products.

He also pointed to the growth in the first months of 2022 in the education, hotel services, and transport sectors compared to last year, highlighting the revenue generated by Cuban nickel exports in the international market.