Cuba foresees adjustments due to deterioration of financial scenario
The Caribbean nation works on a plan that adjusts to the available resources, so measures are expected to cancel the external debt
Cuba is going through a crisis that affects the financial sector. The outlook is characterized by a marked drop in income, lack of cash, weak economic growth and increased debt. This will undoubtedly boost austerity measures and pressure the government to draw up an adjustment plan.
The Minister of Economy, Alejandro Gil, in session of the National Assembly, said: “The first objective is to issue a realistic and feasible plan under the principle that the expenses are adjusted to the available resources […] without increasing the indebtedness external of the country.”
President Miguel Diaz-Canel also added his remarks to the National Assembly, which has revealed that in 2019 the country would reduce the accumulation of arrears through austerity measures and take full advantage of excess inventory and the emergency reserves. Diaz-Canel and Gil estimate growth projections of 1.5% next year.
In any case, it is important to consider that foreign trade fell by 25% from 2013 to 2017 and annual imports decreased to US $ 11,300. The outlook does not seem encouraging, therefore the adjustment measures seem imminent.
M.Pino
Source: El Comercio
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