Cuban economy minister sees gradual recovery despite long lines and blackouts

By Marc Frank

HAVANA (Reuters) – Cuba’s financial system has begun to get better from the results of the pandemic and will develop 4% this 12 months, its financial system minister mentioned, though most Cubans have seen little signal but of aid from meals and vitality shortages.

Financial system Minister Alejandro Gil mentioned on Thursday that the financial system grew 10.9% by way of March in contrast with the identical interval in 2021, when it was “almost paralyzed” by the COVID-19 pandemic.

However it’s nonetheless 7.3% under the place it was in 2019.

“The objective is the gradual restoration of the financial system to succeed in the degrees of exercise that we had in 2019,” Gil mentioned.

Cubans live by way of day by day blackouts and meals, drugs and gas shortages, forcing them to attend in lengthy strains for the fundamentals or flip to a thriving black market.

There have been scattered, small protests this summer time and greater than 150,000 residents have crossed the U.S.-Mexican border since October, in accordance with the U.S. authorities.

“All Cubans on the island are struggling the implications of the financial scenario,” mentioned Havana resident Daniel Rech Companioni after watching Gil give his report on state-run tv.

“However actually, the scenario is vital. With energy outages, meals shortages – primary, elemental issues a citizen ought to have,” he mentioned.

The important thing tourism sector remains to be struggling. U.S. vacationers are discovering it exhausting to get to Cuba due to their authorities’s restrictions imposed on journey to the island, whereas different guests are cautious because of the disaster and following final 12 months’s unrest. There have been round 700,000 international guests within the 12 months to June, nicely beneath what is required to succeed in a 2.5 million objective for the 12 months.

After many years of decline on account of administration points and provide shortages, this 12 months’s sugar output was half of what was deliberate and the bottom for the reason that 18th century.

Gil mentioned inflation was 77% final 12 months and 28% by way of June this 12 months. Unbiased consultants have mentioned it reached triple digits in 2021.

Cuban economist Omar Everleny mentioned he had not dominated out development reaching 4% this 12 months, however that continued U.S. sanctions, the pandemic, rising worldwide inflation and the Ukraine conflict led him to doubt it.

Cuba’s financial system depends on imports, he mentioned, however the nation had little money and hovering gas, meals and delivery prices, undermining its efforts to get better.

“The truth is that the financial system is far worse than final 12 months. Due to this fact, it is rather tough for me to suppose that the 4% shall be met,” he mentioned.

(Reporting by Marc Frank; further reporting by Nelson Acosta and Reuters TV; Enhancing by Rosalba O’Brien)