Cuban Economy Shrank 11% In 2020, Government Says

Cuba’s already cash-strapped economy shrank 11% in 2020 due to the pandemic, tougher U.S. sanctions and domestic inefficiencies, Economy Minister Alejandro Gil said on Thursday, forecasting 6% to 7% growth for next year, Reuters reported. Addressing a year-end session of the Communist-run country’s parliament, Gil said it would take the next two years for the state-run economy to recover from this year’s sharp contraction. The government estimate was even more dire than that of the United Nations Economic Commission for Latin America and the Caribbean which this week predicted an 8.5% contraction for Cuba this year, compared to a 7.7% regional decline. “This year, we received just 55% of the hard currency we had planned,” said Gil, who did not provide data on the debt, trade or current account. Read more