Cuban Government Unveils Economic Package to Boost Economy
The Cuban government has announced a series of measures aimed at “correcting distortions” in order to revive the country’s economy, according to Deputy Prime Minister and Minister of Economy and Planning, Alejandro Gil Fernández. These measures, announced by Prime Minister Manuel Marrero last week, include an increase in the price of basic services and are intended to address criticisms from Cuban citizens about the current economic situation.
Gil Fernández defended the measures, citing the “war economy scenario” that Cuba is currently facing and the need to correct distortions in the economy. Among the changes, the subsidization of products through the ration book system will be re-evaluated, and prices for fuel and electricity will increase. The government also plans to introduce tax reforms for micro, small, and medium-sized enterprises (MSMEs) to increase state budget income.
The Deputy Prime Minister emphasized that the objective of these measures is to “protect the most vulnerable layers of the population” and incentivize production and work. However, not all details of the economic package have been disclosed.
Additionally, the government intends to gain control of the informal currency exchange market and recover management of the currency. Despite efforts to control the money held by Cuban emigrants and non-state businesses, the circulation of dollars outside of state banks remains a concern for the government.
While the economic package has been described as a result of consultation with Cuban citizens, it has also raised questions about its potential impact on the population. The government has yet to provide a timeline for the implementation of these measures, and details on other planned price increases have not been fully disclosed.