Cuba Sees Hints of Recovery, Announces ‘Audacious’ Measures to Tame Inflation | Investing News

By Dave Sherwood and Nelson Acosta

HAVANA (Reuters) – Cuba ‘s ailing economy has begun to recover in some sectors after two years of pandemic-induced contraction but soaring global prices for food and fuel require “audacious” measures Saturday.

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 said inflation had also slowed despite upward pressure on the price of imports.

“We are beginning to see a clear and gradual recovery,” Gil said.

But the price of Cuba is not limited to $ 700 million in the first quarter, outpacing the country ‘s modest gains in exports, for feeding livestock and wheat.

Cuba´s tepid recovery at risk of being threatened {nL2N2W20F1}

Tourism, complicating recovery.

The government ‘s target of 4% growth in 2022 was not met.

Cuba´s unofficial exchange rate, which has ballooned to five times the government rate of 24-1 in recent months, slashing buying power for the average Cuban.

To combat this, Cuba will start selling foreign currencies at the official rate and black market rates, but limit those deals to certain state-run and private businesses in a bid to boost output of high-demand products.

The economy has said that it would be more productive to underpin “production that will later sell to the population in national currency.”

Although the cash-strapped government has been working towards that goal.

“These are bold, innovative measures. There are no magic … solutions that can solve all the problems at once, “Gil said.

(Reporting by Dave Sherwood and Nelson Acosta; Editing by Mark Porter)

Copyright 2022 Thomson Reuters.


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