Categories
Uncategorized

Cuba shows signs of recovery and announces “audacious” measures to control inflation

Please try another search Economy10 hours ago (May 14, 2022 03:36PM ET) © Reuters. FILE PHOTO: Cranes dot the skyline as the building of luxury hotels and the renovation of historic buildings are underway, in Havana, Cuba May 16, 2017. Picture taken May 16, 2017. REUTERS/Stringer By Dave Sherwood and Nelson Acosta HAVANA (Reuters) -…


Investing.com - Financial Markets Worldwide

Please try another search



Economy10 hours ago (May 14, 2022 03: 36PM ET)

Cuba sees hints of recovery, announces (c) Reuters. FILE PHOTO: Cranes dot the skyline as the building of luxury hotels and the renovation of historic buildings are underway, in Havana, Cuba May 16, 2017. Picture taken May 16, 2017. REUTERS/Stringer

By Dave Sherwood, Nelson Acosta

HAVANA – Cuba’s ailing economic system has started to recover after two years of recession. However, rising global fuel prices and food prices have made it difficult for the government to control inflation. Alejandro Gil, Cuba’s economy minister, told Cuban lawmakers that there had been an 563261% increase in exports to Cuba during the first quarter.

Gil said Cuba saw a 38% increase in exports in the first quarter, boosted by the rising price of nickel, a top mineral export. He stated that inflation has also declined despite the increasing import prices.

We are seeing a clear, gradual recovery,” Gil stated.

But the price Cuba paid for imported goods jumped by nearly $700 million in the first quarter, outpacing the country’s modest gains in exports, a predicament Gil attributed to “imported inflation” driven by fast-rising prices for such products as fuel, corn for feeding livestock and wheat.

U.S. sanctions, soaring fuel and food prices, partly due to the Russian invasion, have put Cuba’s slow recovery in jeopardy and are likely to increase food, medicine, and other necessities. nL2N2W20F1

Tourism, a top source of the foreign exchange necessary to pay for pricier imports, has also lagged well behind government targets, complicating recovery.

Gil did not provide figures for overall gross domestic product nor did he address how first-quarter results contributed to meeting the government’s target of 4% growth in 2022.

A major sticking point, Gil said, continues to be Cuba’s unofficial exchange rate, which has ballooned to five times the gov

Read More

Leave a Reply

Your email address will not be published.