Cuba expects 2 % economic growth in 2022

 

HAVANA, Cuba, Dec 12 (ACN) Alejandro Gil Fernandez, Cuban deputy prime minister and head of economy and planning, informed today before Parliament that even though in 2022 the projected levels of the Cuban economy were not reached, this year the GDP is estimated to grow by 2 %.

We have practically recovered the income from exports of goods compared to before the COVID-19 pandemic in fields such as nickel, tobacco, honey and sea products, but the planned levels were not achieved, said the minister when presenting the report on the progress of the economy and compliance with the plan of measures approved in the 10th Ordinary Session of the National Assembly of People's Power (Parliament).

In the presence of Army General Raul Castro Ruz via videoconference, and in the plenary session of Miguel Diaz-Canel, President of the Republic and First Secretary of the Central Committee of the Communist Party of Cuba; and Esteban Lazo, President of the Parliament, Gil Fernandez said that according to the estimate, and with the closing of November, the annual plan of imports will not be completed.   

He added that the shortage of foreign currency continues being a key element that prevents further progress in the production of goods and services, while exports and tourism are the main sources of income.

Regarding tourism, he said, the country will close with 1.7 million international visitors out of 2.5 million planned, although domestic tourism is growing compared to 2021.

 A decrease in telecommunications services revenues is expected due to the shift in demand towards plans in local currency, instead of international recharges.

We have to concentrate our efforts in capturing foreign currency from exports, expressed Gil Fernandez, and emphasized that national production is not reaching the expected levels either; its recovery is slow while a group of measures in agriculture are giving gradual results, among them the operation of the Agricultural Development Bank.

Concerning inflation, he informed that this phenomenon has not been stopped, the measures have not had the expected results and at the end of October the accumulated annual inflation was 28.76 %.

The basket of goods and services has an average growth of 29 %, while the inter-annual (October-October) is at 40 %, with the consequent affectation to the purchasing capacity and consumption, one of the most urgent issues to be solved, the deputy PM specified.

This is not a market economy, it is necessary to establish a control over the profits and earnings of the economic actors, since this is an inclusive economy, the minister remarked.

On the measures adopted in relation to the money market, he pointed out that in only four months they bought more than 15 million dollars, 10 times more than what was previously acquired, and there is still a gap.

About nine million were sold to the population in the Exchange Houses and about six million were destined to economic actors for the import of inputs and subsequent sale of products in national currency, detailed Gil Fernandez.

As for the participation of foreign investment in the wholesale and retail market, he commented that about 60 projects are being worked on, together with the relaxation of the regulations for imports by natural persons of medicines, food, renewable energy sources and electricity plants.

He highlighted that there is some improvement in a high priority issue such as the stabilization of the National Electric System and recalled that 2022 was a difficult year due to the slowdown and paralyzation of activities that have an impact on the population and the economy.

He pointed out that the year will close with 480 state-owned companies with losses, many of them affected by Government measures to ceiling prices, a matter that must be reviewed since not all of them are inefficient.

Cuban official stated that 5,895 MSMEs have been approved, of which 72 are state-owned and 59 are non-agricultural cooperatives.

Notwithstanding the measures, the strengthening of the state-owned companies has not been achieved and in 2023 we have to advance in the self-management of the municipalities, he concluded.