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The Cuban Foreign Minister, Bruno Rodríguez Parrilla, reported this Tuesday to the Diplomatic Corps accredited in the island that the United States embargo has caused the country damages valued at 7.556 million dollars in 2024, according to official estimates.
Resorting to the old narrative of blaming the embargo for the country's ills, Rodríguez claimed that, if that policy did not exist, the Gross Domestic Product (GDP) at current prices would have grown by 9.2% last year.
"Two months of blockade have caused damages amounting to $1.6 billion, equivalent to the cost of fuel needed to meet the country’s normal electricity demand," was published on the social network X (formerly Twitter), without explaining how those alleged losses are calculated.
He added that just 12 days of embargo would result in losses of 250 million USD, which is the same amount needed to annually maintain the National Electric Power System.
However, the figures contrast with the previous acknowledgments from the government itself, which admitted that the Cuban economy contracted by 1.1% in 2024 and that it failed to achieve the projected growth of 3% for the GDP.
The Minister of Economy and Planning, Joaquín Alonso Vázquez, acknowledged in July that "what is currently entering the country is insufficient" even to cover basic resources such as food, fuel, or the maintenance of the electrical system.
The stagnation in production, the drop in exports, and the energy collapse have exposed a systemic crisis that directly impacts Cuban households.
The economist Pedro Monreal has pointed out that the recognized official inflation underestimates the loss of purchasing power and that the reduction of the state salary fund confirms that the population has borne the brunt of the economic adjustment.
Although the government insists on attributing the crisis to the U.S. embargo, independent economists emphasize that the deterioration can also be explained by low productivity, a growing fiscal deficit, a lack of foreign investment, and a centralized model that is unable to generate foreign currency sustainably.
Not to mention the corruption attributed to the regime: a recent investigation revealed that GAESA, the Cuban military conglomerate, has accumulated over 18 billion dollars while the population faces shortages.
The contradiction between the official discourse and the economic reality has intensified citizen discomfort, amid power outages, rampant inflation, and a fragmented currency market that further erodes the purchasing power of the population.
Frequently Asked Questions about the Impact of the Embargo on the Cuban Economy
What is the impact of the U.S. embargo on the Cuban economy according to the government?
The Cuban government claims that the U.S. embargo has caused damages amounting to 7.556 billion dollars in 2024, and asserts that without this policy, GDP could have grown by 9.2%. However, independent economists highlight that internal factors such as low productivity and the centralized model also contribute to the economic decline.
What other internal factors affect the Cuban economy?
Independent economists point out that low productivity, the growing fiscal deficit, lack of foreign investment, and a centralized model incapable of generating foreign exchange sustainably are internal factors that worsen the economic crisis in Cuba. Furthermore, corruption and mismanagement exacerbate the situation.
How has the crisis impacted the daily lives of Cubans?
The economic crisis has led to frequent blackouts, rampant inflation, and shortages of basic goods, severely impacting the purchasing power of the population and their quality of life. Cubans are struggling to meet basic needs such as food, fuel, and medicines.
What response has the Cuban government given to the economic crisis?
The Cuban government has repeatedly blamed the U.S. embargo for economic problems, but has also acknowledged internal errors and the need for reforms. However, the measures implemented so far have not succeeded in reversing the crisis or meeting the needs of the population.
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