The 2020 economy in socialist Cuba: A disastrous year

When a worldwide pandemic is combined with the communist Castro dictatorship’s already disastrous corrupt socialist economic policies, the result is an even bigger disaster.

Diario de Cuba reports on the devastating year Cubans suffered under the yoke of a socialist tyranny:

A Disastrous Year for the Cuban Economy

At DIARIO DE CUBA we run down the most important issues affecting the Cuban economy in 2020.

2020 could be described as “disastrous” for the Cuban economy. Although the island had been stagnant for several years, the tepid forecast of 1% growth issued by Economy Minister Alejandro Gil at the end of last December clashed with the major contraction (-11%) the country suffered.

The economic downturn has been so devastating that not even the forecasts released by the Economic Commission for Latin America and the Caribbean (ECLAC) were close to reality, as the entity predicted a drop of just 8.5% for the island.

The coronavirus pandemic

One of the main reasons for the economic collapse on the island was, undoubtedly, the coronavirus pandemic. However, as Cuban economist Omar Everleny has stated, the Cuban economy had been enduring “a profound crisis since mid-2019, whose palpable effect was a shortage of gasoline, on the one hand, and a lack of some foods, such as chicken, sausages, toilet and detergent, on the other.”

However, the economist pointed out that the effects of the pandemic aggravated this situation, which included a drop in international tourism and a cessation of a good portion of private sector activities.

[…]

The Dollarization of the Economy

One of the first measures that the Cuban government took in the face of the worsening of the crisis was the opening of stores, which currently exceed 300, at which various products are sold in foreign currencies – which several economists noted could mean the beginning of a process leading to the dollarization of the economy.

In this regard the Cuban economist Tamarys Lien Bahamonde stated that the economic logic of the measure is similar to that of a “freeze on bank accounts”, since “the country will not sell foreign currency to individuals, and will prevent these currencies from leaving the island.”

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2 thoughts on “The 2020 economy in socialist Cuba: A disastrous year”

  1. Hey, as long as the “diaspora” keeps the “revolution” afloat and the prime directive holds up, who cares?

    Do you think the ruling class gave a shit about the miseries of the “special period” for ordinary Cubans?

    It’s all about staying in power, baby, and everything else is just so much cháchara.

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