Cuba’s economic growth is less than 2% this year and is 8% below pre-pandemic levels, according to Economy Minister Alejandro Gil.
Gil told the country’s parliament that the primary sector, which includes agriculture, mining, and other fundamental output, was down 34.9 percent in 2019 compared to the previous year, while manufacturing was down 20 percent. Tourism, communications, and education were all down 4.9 percent in the third sector.
Cuba, which is heavily reliant on imports of food, fuel, and other goods, blames US sanctions and the coronavirus pandemic for a more than 50% drop in export revenues, which are required to pay for imports, while conceding that market-oriented changes have advanced too slowly in Cuba.
Gil reported that export revenues this year have been $1.3 billion, 35.7 percent of what was predicted, while imports have been $4.4 billion, likewise considerably below the Cuban government’s expectations.
The minister stated that inflation is raging at a 45-percentage-point pace this year, up from 39% last year, a statistic that many economists believe understates the rate since it does not sufficiently account for a burgeoning informal market driven by scarcity.
