The Cuban regime officially acknowledged the stagnation of the national economy during the most recent meeting of the Council of Ministers, chaired by the ruling Miguel Díaz-Canel and led by Prime Minister Manuel Marrero.
At the meeting among communists, the economic results at the end of March were discussed, characterized by the failure to meet plans, declines in strategic sectors, and a sugar harvest that remains in the red.
Exports and foreign currency earnings below the plan
According to the official newspaper Granma, during the presentation of the report from the Ministry of Economy and Planning, the head Joaquín Alonso Vázquez acknowledged that, although the exports of goods increased slightly compared to the previous month, they did not meet the expected targets.
In the case of services, the situation is even more critical: tourism fell by 22% compared to the same period in 2024, highlighting the deterioration of one of the country's economic pillars.
Just a few days ago, Cuba's Minister of Tourism, Juan Carlos García Granda, expressed his optimism regarding the recovery of the sector during the 2025-2026 winter season, despite the significant 29.7% decline in the arrival of international visitors reported in the first quarter of the year.
During a press conference following the closure of the International Tourism Fair (FITCuba) 2025 at the Cabaret Tropicana, García Granda stated that the fair "exceeded expectations" not only from an organizational standpoint but also due to the participation of more than 1,500 foreign professionals and 2,573 national attendees, including representatives from both the state and non-state sectors.
Agriculture and investments: minimal progress and selective priorities
The Minister of Agriculture, Ydael Pérez Brito, acknowledged that agricultural production still fails to meet the needs of the population, although he mentioned progress in hiring for this year. Nevertheless, he emphasized that the figures are still far below what is necessary, confirming the ongoing food crisis.
Regarding the investment plan, it was reported that only projects with guaranteed material and financial support will be prioritized, focusing on the recovery of electricity generation, food production (especially in irrigation equipment), and public health, in works and equipment that ensure the continuity of vital services.
"War economy" and calls for internal control
Díaz-Canel, in a combative tone, insisted that Cuba faces an "unprecedented economic war" due to the tightening of sanctions by the United States, which—according to him—forces the management of the economy to adopt a "war economy" approach.
The dictator emphasized that it is urgent to increase foreign currency revenues and optimize their use through: an increase in exports; the replacement of imports; strengthening the national industry; promoting the process of banking, and consolidating the state enterprise system.
The regime also called for better utilization of the internal market as a source of economic development and for the integration of the non-state sector in territorial and national planning. It acknowledged that the lack of control by state entities has generated "unacceptable problems" in relations with private actors.
A diagnosis without fundamental solutions
Although the speech reiterated the need to "correct distortions," "demand results," and "evaluate the actions of the Government Program," the structural causes of the deterioration—such as centralization, state inefficiency, and the lack of deep reforms—were not addressed with genuine self-criticism.
The official statements, focused on external impact and calls for collective effort, reflect a model that continues to rely on a planned and vertical economy, with no concrete signals of openness or substantial transformation.
Cuba is grappling with a multidimensional economic crisis, characterized by uncontrolled inflation, prolonged blackouts, food shortages, and collapsed services. And although the government acknowledges the stagnation, it insists on implementing failed formulas without taking its share of responsibility.
Frequently Asked Questions about the Economic Crisis in Cuba
Why is the Cuban economy stagnant?
The Cuban economy is stagnant due to a centralized and inefficient economic model, internal structural problems, and the lack of deep reforms. Although the government blames the U.S. embargo, internal deficiencies such as excessive centralization, bureaucracy, and the lack of incentives for the private sector also play a crucial role in the current crisis.
What are the sectors most affected by the economic crisis in Cuba?
The sectors most affected by the economic crisis in Cuba are tourism, agro-industry, and electricity generation. Tourism has dropped by 22% compared to the previous year, agricultural production does not meet the basic needs of the population, and the energy sector suffers frequent blackouts. These issues reflect a lack of investment, maintenance, and ineffective economic management.
What measures is the Cuban government taking to address the economic crisis?
The Cuban government has announced measures such as prioritizing investments with material and financial assurance, focusing on food production, electricity generation, and public health. It also insists on a "war economy" and optimizing the use of foreign currency, but so far, these measures have not had a significant impact on improving the economic situation.
How is the economic crisis affecting the daily lives of Cubans?
The economic crisis is severely impacting the daily lives of Cubans, with uncontrolled inflation, shortages of food, and collapsed basic services. Frequent blackouts and a lack of essential supplies have deteriorated the quality of life, while social discontent is growing due to the government's lack of effective solutions.
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