Cuba's Economy and Planning Minister, Joaquín Alonso Vázquez, encouraged families to remain hopeful and innovative in their efforts to "build the Cuba of our dreams," asserting that "we can and we will" under the guidance of the Communist Party. During his address to the National Assembly, Alonso Vázquez urged confidence in the island's future just moments after predicting a modest 1% economic growth for 2025, according to the government-aligned site Cubadebate.
The anticipated positive growth in Gross Domestic Product (GDP) is attributed to a rebound in tourism, increased exports of key goods, and the revitalization of sectors such as agriculture and industry. Alonso Vázquez also emphasized that stabilizing the energy system and improving the fuel balance will be crucial to achieving this target.
Nevertheless, the economic outlook for 2024 remains challenging, marked by low foreign currency earnings, unmet agricultural production targets, a decline in electricity generation, and halted industrial sectors like steel and cement. Despite these hurdles, the minister stressed the necessity for the country to find new ways to reduce the fiscal deficit and boost external income, focusing on service exports and tourism.
Alonso Vázquez highlighted that the cornerstone of development lies in ensuring a reliable energy supply and attracting more foreign direct investment, as well as strengthening remittances and the export of innovative products. He projected a reduction in inflation for 2025, estimating figures to range between 25% and 30%.
The minister's message underscores the importance of tackling challenges with strategic planning and confidence amidst an economic landscape fraught with profound structural limitations. Just hours ago, the Cuban government claimed that inflation is showing a slight slowdown, with the rate standing at 28% by the end of October 2024. However, experts have disputed this claim, arguing that the island is actually experiencing "stagflation."
Earlier in December, Alonso Vázquez echoed this sentiment by stating that while inflation has decreased, Cubans are not seeing this reflected in market prices.
Key Economic Challenges in Cuba
What are the main factors driving Cuba's projected economic growth in 2025?
The projected economic growth in Cuba for 2025 is primarily driven by a recovery in tourism, increased exports of key goods, and revitalization in sectors like agriculture and industry.
How does the Cuban government plan to address the country's fiscal deficit?
The Cuban government plans to address the fiscal deficit by prioritizing service exports and tourism, increasing foreign direct investment, and strengthening remittances and the export of innovative products.