Within the framework of the 7th plenary session of the Central Committee of the Communist Party of Cuba (PCC), concluded this Saturday in Havana, an ambitious macroeconomic stabilization program has been discussed and evaluated. This initiative aims to address the current monetary, financial and fiscal imbalances that have plunged the country into a deep crisis over the past three years.

The 15 new points proposed at this meeting, intended to be incorporated into the Economic and Social Policy Guidelines of the Party and the Revolution, include crucial measures to boost economic recovery. Among them is a “macroeconomic stabilization programme”, previously demanded by independent experts due to the deterioration of economic indicators.

The programme seeks to establish a monetary, exchange-rate, financial and fiscal environment conducive to economic recovery and growth, as well as the stability of the national currency and the reduction of inflation.

In addition, it has been proposed that the economy be effectively de-dollarized and that an exchange rate based on stable economic criteria be implemented. These measures seek to ensure that variables and prices are not administratively fixed, but reflect the real conditions of the economy.

In this context, the plenary also suggested the elimination of an earlier line advocating the continuation of the Ordinance Task, a set of reforms that sought to put an end to monetary duality and that has generated significant imbalances at the micro and macro levels.

Other recently proposed guidelines seek to reduce the monetary issuance associated with fiscal and quasi-fiscal activity, with the aim of combating inflation and the loss of purchasing power of wages and pensions. It should be noted that Cuba is about to close its fourth consecutive fiscal year with a deficit exceeding 10% of Gross Domestic Product (GDP).

K. Tovar

Source: Bancaynegocios

(Reference image source: JF Martin, Unsplash)

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