{"id":305665,"date":"2024-07-17T17:58:18","date_gmt":"2024-07-17T21:58:18","guid":{"rendered":"https:\/\/oncubanews.com\/en\/?p=305665"},"modified":"2024-07-17T17:58:18","modified_gmt":"2024-07-17T21:58:18","slug":"cuban-economy-contracts-1-9-in-2023-according-to-the-government","status":"publish","type":"post","link":"https:\/\/oncubanews.com\/en\/cuba\/economy\/cuban-economy\/cuban-economy-contracts-1-9-in-2023-according-to-the-government\/","title":{"rendered":"Cuban economy contracts 1.9% in 2023, according to the government"},"content":{"rendered":"

The <\/span>Cuban economy<\/b><\/a> contracted by 1.9% in 2023, as confirmed this Monday by the Ministry of Economy during the work session of the Economic Affairs Commission of the National Assembly of People\u2019s Power (ANPP).<\/span><\/p>\n

Minister of Economy Alonso V\u00e1zquez said that \u201cthe complex scenario continues, marked by high fiscal deficit and monetary emissions above what is recommended.\u201d<\/span><\/p>\n

\n

El ministro de Econom\u00eda indic\u00f3 que, como parte de la descentralizaci\u00f3n, se crearon nuevas estructuras para la atenci\u00f3n del desarrollo territorial y de los actores econ\u00f3micos, aunque reconoci\u00f3 que se debe trabajar para cubrir las plantillas.https:\/\/t.co\/J7iXEHQna6<\/a><\/p>\n

\u2014 Cubadebate (@cubadebatecu)\u00a0July 15, 2024<\/a><\/p><\/blockquote>\n

\u201cWe have insufficient income in foreign currency, external credits, and low recovery of national production. At the same time, there are limitations with fuel and energy; high and persistent inflation, and high foreign debt,\u201d he added, <\/span>quoted<\/b><\/a>\u00a0by <\/span>Cubadebate<\/span><\/i>.<\/span><\/p>\n

Four years marked by a crisis<\/b><\/p>\n

The figures, which are usually made public in the middle of the year following the fiscal year, fall within the range \u2015 of a drop of between 1 and 2% \u2015 that the government had planned for the end of 2023, as highlighted by EFE news agency.<\/span><\/p>\n

In this way, for four years Cuba\u2019s economy continues below the levels before the COVID-19 pandemic.<\/span><\/p>\n

In 2020, the country recorded a 10.9% drop in its GDP, followed by a timid growth of 1.3% and 1.8% in 2021 and 2022, respectively.<\/span><\/p>\n

Among the reasons for the contraction in 2023, Alonso V\u00e1zquez assured that they are the result of U.S. sanctions, the lack of foreign currency and product supply, the lack of fuel, the excess of cash in circulation, among other \u201cdistortions.\u201d<\/span><\/p>\n

V\u00e1zquez stressed that the tourism and hotel sector was the one that contributed the most to the GDP of the previous year, with 13%. On the other hand, he warned that in 2024 the figures \u201chave not been encouraging.\u201d<\/span><\/p>\n

\n

\u270d\ufe0f| Las 11 comisiones tendr\u00e1n en agenda unos 90 temas, antecedidos por una amplia labor de los diputados durante este a\u00f1o.<\/p>\n

Los parlamentarios evaluar\u00e1n asuntos como el plan de la econom\u00eda, la bancarizaci\u00f3n, la zafra azucarera, el transporte y otros.<\/p>\n

|\u00a0https:\/\/t.co\/UmC4xHZNie<\/a>\u00a0pic.twitter.com\/aUfHoFVUfj<\/a><\/p>\n

\u2014 Presidencia Cuba (@PresidenciaCuba)\u00a0July 15, 2024<\/a><\/p><\/blockquote>\n

For example, he affirmed that in the first half of the year, the country received 88% of the foreign exchange income it had planned. This translates into $222 million less than anticipated.<\/span><\/p>\n

He also reported that there remains an \u201cexcess of money in circulation\u201d and a \u201chigh concentration\u201d of it \u201coutside\u201d the island\u2019s banking system, which adds to an \u201cinsufficient supply of goods and services.\u201d<\/span><\/p>\n

All this, together, makes it \u201cvery difficult\u201d to lower the inflation rate in Cuba, around 30% year-on-year.<\/span><\/p>\n

Measures to cut expenses<\/b><\/p>\n

The Cuban Parliament will endorse this week a new government adjustment plan, the second in just six months. The Council of Ministers has presented a battery of measures to cut expenses \u2015 from suspending public investments to reducing budget items \u2015 which mainly sought to increase income, in pesos and foreign currency.<\/span><\/p>\n

The country is mired in a deep crisis, which has been aggravated by the combination of the pandemic, U.S. sanctions and errors in economic and monetary management.<\/span><\/p>\n

The infinite \u201cviandazo\u201d: what we should not forget about the past<\/a><\/p><\/blockquote>\n