As Cuba enters 2024, the nation faces a multitude of challenges, including the aftermath of natural disasters such as cyclones and earthquakes, which have compounded existing economic struggles. President Miguel Díaz-Canel has described the upcoming year as 'very hard,' with a revised growth forecast of only 2% following a contraction of 1.9% in 2023 [56a4384d]. The government has adopted a new strategy to stimulate the economy, emphasizing the importance of unity among the Cuban people as essential for progress [c923f02a].
In response to the ongoing economic crisis, the Cuban government has implemented a package of adjustments that includes price increases for fuel, electricity, and services, alongside new taxes for micro, small, and medium enterprises (MSMEs). Tariffs on finished goods have also been raised, although non-commercial imports of essential goods remain exempt from these tariffs [56a4384d].
The economic situation has been likened to a 'war economy,' prompting the government to introduce stringent measures aimed at correcting macroeconomic imbalances. In June 2024, regulations were enacted that imposed a 30% spending cap on state sector dealings with the private sector, further tightening government control over economic activities [56a4384d].
Additionally, a new decree was issued in August requiring large consumers to engage in renewable energy production, reflecting a commitment to sustainability amidst economic hardship [56a4384d]. As part of the government's long-term strategy, plans for partial dollarization in 2025 have been announced, which could stabilize the economy but also raise concerns about the implications for the national currency [56a4384d].
Despite these measures, Cuba's short-term economic priorities overshadow long-term goals, as highlighted by Dr. C. Juan Triana Cordoví. The National Plan for Economic and Social Development until 2030 (PNDES-2030) exists but lacks clear indicators, goals, and costs, which undermines its effectiveness [e4225b37]. Historical context reveals that the Economic and Social Guidelines of the Party and the Revolution have not translated into tangible progress, with current issues including GDP decreases, real wage reductions, and informal exchange rate fluctuations [e4225b37].
The institutional framework remains weak, with corruption prevalent and macroeconomic management imbalanced. Productive transformation has regressed, and infrastructure improvements have proven insufficient. Furthermore, connections between science and business are weak, and environmental concerns are rising [e4225b37]. Human development has deteriorated into inequity and poverty, prompting calls for a reevaluation of the PNDES-2030 to establish clear indicators and accountability [e4225b37].
Looking forward, the Cuban government is calling for renewed enthusiasm and drive towards building a socialist, independent, and happy nation in 2025. The inclusion of Biomodulin T in primary health care is also part of the government's focus on improving health services [c923f02a]. The resilience and contributions of the Cuban people in recovery efforts have been highlighted as vital to overcoming the challenges faced in 2024 [c923f02a].