Cuba imposes strict new measures to combat economic turmoil

The Cuban government has announced it will strengthen price controls and tackle tax evasion, Reuters reported, describing it as a desperate attempt to handle the budget deficit and inflation under measures termed a "war economy" by the authorities.

"We are here with the conviction that all of us are here to save the revolution and to save socialism," said President Miguel Diaz-Canel during a government meeting in Havana, as quoted by the newspaper "Granma," the official press organ of the Central Committee of the Communist Party of Cuba.

Reuters assessed that the economic crisis in Cuba arises from a combination of several factors, including the effects of the COVID-19 pandemic, tightened sanctions imposed by the USA, and a state-dominant model hindered by bureaucracy, mismanagement, and corruption.

The social and economic situation in the Caribbean country has been considered the worst since the revolution led by Fidel Castro in the 1950s. In the past two years, a record number of residents have fled from Cuba. Electricity shortages further hamper life and economic activity on the island.

The measures announced by the government in Havana aim to address macroeconomic imbalances, increase foreign currency flow, and stimulate domestic production, with a particular emphasis on food production, explained the First Deputy Minister of Economy and Planning Mildrey Granadillo de la Torre.

The report from the government meeting in official Cuban media described the difficult economic situation but did not provide specific data. It also did not state when the announced measures are to be implemented.

The Cuban authorities lifted the ban on private businesses in 2021, which had existed since the Castro revolution. However, supporters of the Communist Party argue that price disparities have contributed to the sharp rise in inflation.