purchasing power of salaries sinks

The Minister of Economy and Planning of Cuba, Alejandro Gil Fernández, presented a report on the country’s economy in 2023.

The president admitted that the expected economic growth of 3% of GDP was not achieved and that there could be “an economic contraction.” In this article we tell you some of the main elements that he addressed.

Gil Fernández explained that the Cuban economy was affected by the “economic blockade,” which he described as a very destructive force. He also mentioned insufficient foreign exchange earnings generation and macroeconomic imbalances as major challenges.

Regarding exports, he reported that they reached a total of 9.07 billion dollars, which is 770 million dollars less than planned. However, he assured that there was a recovery in exports of products such as tobacco and fishing products.

Tourism also showed a slight recovery, with an estimated 2,450,000 tourists for the year, a growth of 50% compared to 2022, but still well below the hotel capacity in which millions are invested.

The head of Cuba’s Economy pointed out that national production was affected during the year, both for domestic consumption and exports, due to the shortage of fuel and inputs. Planned levels were not reached in products such as tubers, corn, pork, milk and eggs compared to the previous year, he said.

CUBAN ECONOMY

The economic situation also affected social activity. Gil Fernández affirmed that the regulated family basket continues to be a “priority”, despite its instability, and that it implies an expense of 1.6 billion dollars for the government.

In addition, he highlighted the importance of guaranteeing the generation of electricity, the availability of fuel, cleaning and other essential products, all with a significant deficit in the year.

Regarding inflation, he spoke of a growth of 30% by the end of the year, although a “slowdown in the pace of price growth” has been observed. added. According to Gil Fernández, this scenario has caused a cumulative increase in prices that “affects the purchasing capacity of salaries and pensions.”

In a recent message, the Cuban economist Pedro Monreal exposed that the average salary in Cuba is below the value of the Basket of Reference Goods and Services (CBSR), which implies that the average income is not enough to satisfy the basic needs of family consumption.

He argued that, to a large extent, those who depend on a state salary in Cuba are poor and that the government should consider the salary in Cuba not as a remuneration linked to business “compliance” indicators, but related to the cost of basic needs. for family consumption.