Mother Earth Travel > Country Index > Cuba > Map Economy History |
| Economy - overview: The government, the primary player in the
economy, has undertaken limited reforms in recent years to stem excess
liquidity, increase enterprise efficiency, and alleviate serious shortages
of food, consumer goods, and services, but prioritizing of political
control makes extensive reforms unlikely. Living standards for the average
Cuban, without access to dollars, remain at a depressed level compared
with 1990. The liberalized farmers' markets introduced in 1994, sell
above-quota production at market prices, expand legal consumption
alternatives, and reduce black market prices. Income taxes and increased
regulations introduced since 1996 have sharply reduced the number of
legally self-employed from a high of 208,000 in January 1996. Havana
announced in 1995 that GDP declined by 35% during 1989-93 as a result of
lost Soviet aid and domestic inefficiencies. The slide in GDP came to a
halt in 1994 when Cuba reported growth in GDP of 0.7%. Cuba reported that
GDP increased by 2.5% in 1995 and 7.8% in 1996, before slowing down in
1997 and 1998 to 2.5% and 1.2% respectively. Growth recovered with a 6.2%
increase in GDP in 1999 and a 5.6% increase in 2000. Much of Cuba's
recovery can be attributed to tourism revenues and foreign investment.
Growth in 2001 should continue at the same level as the government
balances the need for economic loosening against its concern for firm
political control.
GDP: purchasing power parity - $19.2 billion (2000 est.) SOURCE: The World Factbook |
Mother Earth Travel > Country Index > Cuba > Map Economy History