Cuba's Economic Outlook

By Nelson Acosta

HAVANA (Reuters) – Cuba is unlikely to see any growth in 2024, according to Economy Minister Joaquin Alonso, as its already struggling state-run economy grapples with the aftermath of several natural disasters this year.

Natural Disasters Impact

Hurricanes Oscar and Rafael struck the Caribbean island in October and November, leaving millions without power and highlighting vulnerabilities in an aging electrical grid. Additionally, a powerful magnitude 6.8 earthquake recently near Santiago, the country's second-largest city, destroyed at least 34,000 homes and damaged infrastructure nationwide.

Current Economic Status

"The economy should not grow this year," Alonso told reporters in Havana. "Indisputably there has to be an impact."

Daily rolling blackouts, which have plagued most of the island, continue to be a norm throughout Cuba, with authorities calling for extended emergency blackouts in the capital on Thursday.

Energy Crisis

Alonso noted, "The economic development of a country depends greatly on energy, and we have had electrical problems throughout the year and not just this month."

The country, already facing severe shortages of food, fuel, water, and medicine, has struggled to manage the resources affected by these natural disasters. This multi-year crisis has led to a significant exodus of Cubans leaving the island.

According to the economy ministry, Cuba's economy contracted by 1.9% in 2023, as reported in July.