Kuba

Cuba Economic Profile

Cuba is a socialist state that has maintained a unique economic system since the economic embargo of 1961. The GDP is approximately $100 billion, making it the fourth largest economy in Latin America after Brazil, Mexico, and Argentina. With a population of approximately 11 million, the per capita GDP is at the level of upper-middle-income countries.

Cuba's economy has traditionally centered on the sugar industry, but diversification is now underway. The main industries are sugar, tobacco, nickel mining, and tourism. Tourism in particular is a crucial source of foreign exchange, welcoming millions of visitors annually. Healthcare services and the pharmaceutical industry are also developed sectors, with physician exports playing an important role in foreign exchange earnings.

In recent years, the Cuban economy has faced numerous challenges. Following the pandemic in 2020, a significant decrease in foreign exchange earnings resulted from the decline in tourism, causing the economy to experience a severe crisis. Between 2023 and 2024, chronic energy shortages, electricity crises, inflation, and population outflows have become major issues. Additionally, the U.S. economic embargo continues, leading to restrictions on international transactions and difficulties in fundraising.

Notably, the Cuban government is promoting economic reforms. Efforts are being made to introduce market-oriented elements, including expansion of private economic activities, attraction of foreign investment, and encouragement of entrepreneurship. However, the pace of reform is slow, and it is expected to take time to resolve structural issues. Simultaneously, strengthened relations with Russia and Venezuela have become important elements of economic strategy.