This Wednesday, the Cuban government introduced a fresh set of economic initiatives aimed at "correcting distortions" and jumpstarting the economy by 2025. Prime Minister Manuel Marrero Cruz presented these measures during a meeting with governors and the mayor of the special municipality Isla de la Juventud.
A key component of the plan is the revision of electricity tariffs across specific sectors. Officials claim this step is intended to "encourage savings" amidst a severe energy crisis that has led to power outages exceeding 20 hours in several provinces. Additionally, the government plans to impose centralized maximum retail prices on essential domestically produced staples, such as rice and beans.
Another significant action involves revising the construction pricing system, applicable to both state-owned and non-state economic entities. The government argues that this will enhance productive linkages. Furthermore, prepaid cards will be introduced for legal entities to purchase fuel, following the announcement that gasoline will be available only in foreign currency due to shortages.
The economic strategy also includes incentives to attract foreign investors back to the Mariel Special Development Zone, alongside a new mechanism for managing, controlling, and allocating foreign currency among all economic players.
In terms of labor policies, the government aims to reorganize commerce conducted by non-state forms of management (FGNE) and redistribute unutilized salary funds within budgeted units. The objective is to promote workforce retention by ensuring the fulfillment of specific roles and missions.
State media highlighted that these economic measures are already underway but cautioned that details are sparse. Authorities promise to release "more information in the coming days" as each action is secured.
Additional topics discussed at the meeting included the maternal and child care program, the operation of municipal agro-industrial enterprises, and the quality of communal services.
Understanding Cuba's Economic Strategies for 2025
Why is Cuba revising electricity tariffs?
Cuba is adjusting electricity tariffs in specific sectors to promote energy conservation amid a significant energy crisis causing prolonged power outages in many regions.
What changes are being made to construction pricing?
The government plans to update the construction pricing system, affecting both state and non-state economic entities, to strengthen productive linkages across the sector.
How will the new economic measures impact foreign investment in Cuba?
The measures include incentives designed to draw foreign investors back to the Mariel Special Development Zone, a key area for economic growth.
What is the purpose of introducing prepaid cards for fuel purchases?
Prepaid cards for fuel purchases aim to manage the distribution of gasoline, which will now be available only in foreign currency due to supply shortages.