Cuban economy recovering slower than desired, government says

Cuba’s economy is recovering more slowly than anticipated, as per Alejandro Gil, the Cuban Economy Minister.

Despite a 1.8% growth in the gross domestic product (GDP) in 2022, which fell short of the projected 4% growth, the improved figures have not significantly elevated living standards.

Gil acknowledged that growth has been uneven across different sectors.

Some areas such as hospitality, transportation, and communications are experiencing growth, while others like agriculture, livestock, manufacturing, and commerce are contracting.

The minister pointed to a decrease in goods and services due to production deficits, which he stated often leads to the non-state sector being the sole supplier.

He said this situation fuels inflation, which continues to erode purchasing power and encourages the dollarization of the economy.

The situation is complex and new for the nation, Gil said, referring to the stable exchange rate Cuba had prior to monetary reunification in 2021.

According to official data, inflation in the formal market in Cuba was 44.98% in June, up from 28.86% in the same month in 2022.

The economic challenges, deepened by the pandemic, U.S. sanctions, and policy missteps, have resulted in scarcity of basic commodities, high inflation, partial dollarization, and power shortages.

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More: Cuba news in English, every day from The Rio Times.

This article was drafted with automated assistance and reviewed before publication. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief