Posted 1/24/2024, 5:36:48 PM
Cuba Faces Worst Economic Crisis in 30 Years Due to Government Missteps, US Sanctions, and Pandemic Disruptions
- Cuba is experiencing its worst economic crisis in 30 years due to government mismanagement, currency reforms gone awry, and tightened US sanctions
- Government reforms devalued the Cuban peso and raised state salaries, but this led to high inflation, economic stagnation, and shortages
- US sanctions under Trump cut earnings, fuel supplies, remittances and deterred investment, severely damaging the economy
- The pandemic disrupted trade and depleted foreign reserves, while high global prices exacerbated shortages
- The government is now focused on economic reforms to boost efficiency, innovation and growth, but faces challenges rebuilding confidence and avoiding further external shocks