Cuba is moving in the right direction for more socialism and the gradual recovery of its productive levels, after the adverse scenario imposed by the blockade and COVID-19, according to Minister of Economy and Planning, Alejandro Gil Fernandez, speaking at a press conference to provide an update on the situation of the Cuban economy.
After the loss of 2.4 billion dollars in revenues in 2020, compared to the same period of 2019; the contraction of GDP and the decline of the economy by 10.9%; and the transit through 2021, in which it has not been possible to reopen to tourism, the recovery predicted by authorities will not be evident in the short term and will be moderate.
This reserved optimism is due, according to the minister, to the fact that the country is currently going through a period in which a group of services are starting to operate, while tourism is set to begin again from November 15. In addition, the group of measures implemented this year, among which are the improvement of conditions for the exercise of Self-Employment, the strengthening of the socialist state enterprise and the recent approval and implementation of micro, small and medium-sized enterprises.
The latter is supported by the news published this Wednesday, October 13, by the Ministry of Economy and Planning, on the authorization of the third group of 60 new private MSMEs, which makes a total of 162 authorizations for this activity with a scope that covers all provinces of the country.
According to the minister, although the economy has been going through an exceptional situation of liquidity stress, we are entering a stage of recovery with a diversification of the business fabric, projected GDP growth this year in the vicinity of 2.2% (less than the required 6% per year) and a gradual improvement in the supply levels of certain products to the population, in short supply since mid-2019.
Likewise, he pointed out that for the Cuban government there are three fundamental priorities in the current context: the confrontation of inflation, which has caused so much discontent among the population; the sustainability of the National Electro-energy System, which has paralyzed high-consumption economic activities; and care for vulnerable communities and individuals.
Minister Alejandro Gil was questioned by the press on the subject of inflation, to which he answered that all fiscal, monetary or administrative control measures require the support of an increase in supplies, and it is only with an increase in the supply that the inflationary effect will be considerably reduced.
However, the hard currency circulating in the country cannot be used at this time to curb inflation due to speculation, because this currency must be used as a priority at the national level to acquire, for example, the rice of the basic food basket, the fuel to maintain the generation of energy, or the basic medicines that are lacking, he explained.
We are not building a market economy and we are not moving towards a capitalist and neoliberal economic model, he stressed, while urging to do everything necessary to increase supply by taking advantage of the country’s talent and internal productivity as effective ways to mitigate inflation.
During his address, the minister mentioned the National Economic and Social Development Plan, which will enter its second stage in 2022 with a more dynamic and inclusive economy, a period that until 2026 must not only present concrete results, but also has the challenge of recovering the losses of the 2019-2021 stage, paralyzed by the pandemic.
