[Economics] Cuban economy lost 13% of its GDP since the beginning of COVID

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HAVANA (AP) - The impact of the coronavirus pandemic and US sanctions caused the Cuban economy - since 2020 and so far this year - to lose 13% of its Gross Domestic Product, the head of the bouquet, Alejandro Gil.

Gil appeared on Wednesday before the deputies of the National Assembly of People's Power - Parliament - and also indicated that 2.4 billion dollars were stopped entering the national coffers in 2020, which must be added to the 700 million so far this period, especially due to the stoppage of tourism.

“We are talking that in a period of almost two years we have lost more than 3 billion dollars. The economy has been almost resisting, ”he was quoted as saying by the official Cubadebate portal, which reported on the ministerial appearance. "It is not possible that he does not feel in the daily life of Cubans."

Long lines, shortages and shortages have been part of the daily life of Cubans for months, who also suffered blackouts and the difficulties added by the limitations imposed by the pandemic, such as social isolation and suspended or spaced transportation.

The island's economy practically came to a standstill in these 19 months, especially in tourism, an engine of finances that was immobilized by border closures and suspension of commercial flights. In addition, exportable goods such as tobacco and rum did not comply with their foreign sales plan, Gil indicates, although nickel maintains a stable level and its international price is higher than expected.

During a press conference in mid-October, the minister had indicated that a growth of 2% of its GDP was estimated for this year by 2021.

On this occasion before the deputies, Gil indicated that the country had to spend 1,300 million dollars this year in the purchase of food and highlighted the non-compliance in the national production of key regions such as rice, corn, beans, milk and meats such as that of pork, staples of the island's basket.

 

The official also indicated that there was a "disorder in international logistics" in world markets, as the island, even with paid containers, could not bring them yet due to both the complications of the pandemic and the sanctions that the United States imposes on Havana and it hinder purchases abroad.

At the same time, he defended the dollar stores, opened in recent months to attract foreign currency and which generated a lot of irritation among Cubans, since it forces them to acquire basic goods in these stores - the State has a monopoly on the retail supply -, even without counting with the currency, so you must go to the black market to obtain it.

He also recognized that inflation is one of the main problems for the island's economy.

The Caribbean nation is expected to experience a reactivation as of November 15 with the opening of its borders and a progressive regularization of tourism and other items, in line with a drop in cases of infected with the virus and a massive immunization campaign. from the products Soberana 02, Soberana Plus and Abdala, of national invoice.

Gil reported that from September to date, when the possibility of legalizing small and medium-sized private companies was opened for the first time in five decades, 210 of these firms and seven cooperatives were approved.

 

Link: https://apnews.com/article/noticias-eab4c39c0554b81c990670bed5a630c6