Cuba’s communist dictatorship claims the country saw economic growth in 2016. However, they will not show the figures and statistics to prove it. Observable indicators on the island show the opposite. Combined with the inherent inefficiency and corruption of a centrally planned socialist economic system, experts surmise the economy continues to wallow in a recession.
But by all means, let’s all invest in Cuba’s mysterious economy run by a corrupt dictatorship that keeps the most important economic data secret and while we’re at it, let’s lend the apartheid regime a few billion dollars. I’m sure they’re good for it.
Cuban economy ever more opaque as data omitted from 2016 accounts
Cuba has not provided a detailed breakdown of key economic activity in its annual statistical abstract for the first time this century, leaving would-be investors more in the dark than usual about the Communist-run economy.
The abstract for 2016, published online in June and July by the National Statistics Office, omitted a chapter that usually provides specifics on gross domestic product, exports and money supply as well as data on debt. Those details are sometimes provided a few months later, but last year they failed to materialize.
It was not clear if the information would be released at a later date. The National Statistics Office did not respond when asked by Reuters about the omission.
The government surprised most analysts in December when it announced Cuba’s economy grew 1.6 percent last year, rebounding from a recession in 2016.
Moody’s and the Economist Intelligence Unit forecast continued recession for 2017, while the U.N. Economic Commission for Latin America and the Caribbean (Cepal) predicted anemic 0.5 percent growth.
“The abnormal delay in the macroeconomic indicators for 2016 casts doubt on the official estimate for GDP growth in 2017,” said Carmelo Mesa-Lago, professor emeritus of economics at Pittsburgh University and author of numerous books on Cuba’s economy.
“How is it possible authorities can release that estimate at the end of December and not release the entire national accounts for 2016 more than one year later?” he said.
Cuba’s foreign currency earnings have fallen by billions of dollars since global prices for oil and other commodities crashed in 2014. Service income, which includes the sale of professional services to several oil producing developing countries such as Venezuela, fell by more than a billion dollars in 2016, on top of a similar reported decline in goods exports, according to Reuters estimates.
The government has announced cuts in electricity and fuel consumption, slashed imports and, according to diplomats and businessmen, has fallen behind on payments to suppliers and joint venture partners.
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