Exploring Cuba’s Economic Crisis

The author or editor of several books related to Cuba, including The Cuban Economy in a New Era, Jorge I. Dominguez is a former vice provost of Harvard University. He is also a former vice president of the Weatherhead Foundation and a former president of the Institute of Cuban Studies. Jorge I. Dominguez continues to study Cuba’s economy in the midst of the country’s current economic crisis.

Though some analysts predict that Cuba’s economy will grow by 4 percent in 2022, this growth comes off the back of several years of decline and stagnation. This decline peaked in 2020 when Cuba experienced a 10.2 percent economic downswing.

Several factors currently influence the difficult economic times in Cuba. Flawed economic policy decisions and excessive reliance on state enterprises marked by gross inefficiency lead the list. Former president Donald Trump’s re-implementation of sanctions, which include flight restrictions and the banning of cruises, reduced Cuba’s tourism trade. The economic crisis in Venezuela, which is a key Cuban ally, has also contributed. Furthermore, a decline of 65 percent in Cuban exports from 1989 to 2019 means the country is no longer able to fund its imports with the money earned from exports. These factors combine to create a deepening economic crisis that a minor 2022 recovery will likely do little to assuage.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s