Business

U.S. – CUBA Travel Summit March 24-26 2010

This summit is a timely opportunity for executives of the U.S. travel sector to meet and learn the potential in Cuba directly and personally from Cuban travel officials and specialists. Executives from all participating companies will have the chance for meetings with their Cuban counterparts to discuss their own business objectives. This will be a unique occasion for all players from the U.S. and Cuba to be together in one place to exchange information about the potential in Cuba and the services that U.S. firms can provide.
Source: ALAMAR Associates

Economic Trends for 2007

According to the Economic Survey of Latin America and the Caribbean 2007-2008, in 2007 the Cuban economy posted GDP growth of 7.3%, with a similar growth rate in per
capita GDP, since population growth was almost nil. The overall fiscal deficit increased slightly, from the equivalent of 3.0% of GDP in 2006 to 3.1% in 2007. The rate of inflation rose by 2.8%, which was half the previous year’s rate (5.7%). The balance-of-payments current account showed a surplus equivalent to 0.8% of GDP.

Economic Policy for 2007

The main objective of economic policy in 2007 was to continue with efforts to reduce the imbalances built up during what is known as the “special period”. Specifically, the authorities maintained the medium-term objective of de-dollarizing the Cuban economy and creating the economic conditions for monetary unification

Investment

Raúl reviews progress of hydraulic investment plan in Santiago de Cuba
President Raúl Castro Ruz reviewed the progress of the investment process designed for the capital restitution of water conduits and networks to provide better water services for the population.
Granma Newspaper

Performance for 2006

Tourism and nickel production became Cuba’s mainstay for the successful growth year of 2006. Real GDP was measured at 12.6%, compared to last year’s 11.7%, and adding to the list of production in Cuba’s GDP, was the value of Social Services (which includes the introduction of modern technology in the health care centers and hospitals). The number of registered tourists grew to over 2 million in the year; plus, with active participation from Venezuela, Cuba yielded over 75,000 tons in the nickel sector. (Source: Cuban Economy 2006)

Current Account and Fiscal Operations

Cuba is a state-controlled economy with a small open market sector. The once long- time nucleus of Cuba’s foreign exchange (sugar and it by-products) is on the decline, and products such as nickel, tobacco, and pharmaceutical products are becoming gradually significant in the exporting culture. Sugar still remains a vital influence to the Cuban by-product and agricultural sector, and in attempt to contain the ever rollercoaster output of sugar, the Cuban government is seeking foreign investment in the sugar industry for the first time. According to Cuba's country profile for 2006, the depressed agricultural output of 2006, led to sharp increases in imports on agricultural goods.

Inflation and the Monetary Sector

Inflation in Cuba dropped from 7% in 2005 to 5% in 2006. This positive movement of steady price levels could be associated with the greater alignment between the official and unofficial exchange rates for the Cuban economy. Much of the economic inactivity in the early 90’s caused accelerated money creation and escalated inflationary pressures, which led to a decrease in the purchasing power of the Cuban peso. Subsequent to the lost of purchasing power, was the “dollarization” of the economy. According to an “Overview on Cuba’s Economy in the 2000s”, this is a major impediment in terms of development for the ‘repressed’ economy. From an economic perspective, unifying the exchange rates of peso and dollar economies would be the essential goal, yet unification means devaluing the peso/dollar parity exchange and more importantly realigning Cuba’s structure of wages and salaries.