Monday, September 25, 2023

Cuba has prospects for the fulfillment of economic plans

Alejandro Gil, deputy prime minister and head of economy and planning, assessed today that Cuba has little chance of meeting economic plans drawn up for 2023, although it must increase agricultural production and combat inflation.

Addressing deputies in the National Assembly of People’s Power (Parliament), Gill pointed out that exports of goods and services reached $866 million at the end of April; 23.6 million less than what was estimated in the phase.

Tourism, one of the main foreign exchange generating sectors for the country, accounted for 28 percent of the annual plan in that period, and although it shows a gradual and progressive improvement, it needs to continue working on defending source markets and other aspects. Must, he said. Economy Minister.

He recalled that even though the Caribbean nation reached one million visitors on May 3, it intends to receive more than 3 million this calendar.

He remarked that the implementation of the exchange market until August 2022, although limited, has allowed the reactivation of paralyzed productions, such as some electronics industries, cleaning up of the basic basket, and priority agricultural lines.

Progress is also being made in expanding digital operations, a necessity in the absence of paper currency.

Still far from what the island needs, but a positive sign, Gill noted that more than 80 per cent of state companies show favorable results in the first four months of the year.

In this sense, he highlighted the reduction in losses among the 126 compared to the same phase in 2022, but the fact cannot be lost that the 285 still does not operate with liquidity.

He also highlighted that the national electric power system has improved compared to the previous calendar, mostly with planned impacts, designed to be able to absorb summer demands in better conditions.

However, he said, there has been higher consumption of diesel for production, which has affected industries, transport, agriculture and other economic scenarios.

Also a negative is that the composition of the energy matrix remains unfavourable, with only five per cent based on renewable sources.

He said the country is forging ahead with investments in hydraulics, steel production and transportation, among others; However, one defining aspect is the focus on the fiscal deficit, which currently stands at over 32.7 billion pesos (about $1.362 billion).

Macroeconomic stabilization goes through a gradual reduction of this deficit, he stressed, as well as the creation of a new system for managing liquidity in the country’s foreign exchange.

This last element should make it possible to overcome the limitations of the current exchange control scheme, in addition to creating conditions for its financing and achieving greater integration between economic actors.

World Nation News Desk
World Nation News Desk
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