On the verge of ending a year strongly marked by the lack of food or medical supplies, inflation, a migratory wave never seen before, and a generalized crisis that has affected the daily lives of Cubans, the Government of Havana has announced a package of economic measures for 2024 that will make life more expensive for families on the island in the short term.
During his speech at the second regular session of the National Assembly of People's Power, in its 10th Legislature, the Prime Minister, Manuel Marrero Cruz, expressed that they were dissatisfied with “not having made the necessary progress” this year. After, as is customary, blaming the Cuban situation on the economic embargo that the United States Government has maintained on the island for decades, the delays of the pandemic and the global crisis, the leader acknowledged that an increase has not been achieved. sustainability of national productions and that the Government could have done better: “We could have done more things. Own insufficiencies and subjective problems persist that affect the capacity of economic programs and projections.”
“We need a more strengthened Ministry of Economy and Planning,” he said. He also added that it was necessary to strengthen the work of the Ministry of Finance and Prices, alluding to the “difficulties”, in reference to the high prices of products due to inflation and shortages in the country, and “rectify policies that have not helped us.” allowed to advance.” He also recognized that the country is not working to increase the diversification of goods and services, and that the participation of foreign investment in the development of the economy is insufficient.
In turn, the prime minister announced a series of measures such as increasing fuel prices, electricity prices for certain homes or increasing transportation rates. “They will not have a great immediate effect nor will they solve all the problems, but we will move forward with the conviction that it is the correct path to improve the current situation,” said Marrero.
Cubans feared the rise in fuel prices since a few days ago President Miguel Díaz-Canel spoke of a possible increase in the cost of gasoline. “In what country in the world can you buy nine liters of gasoline with one dollar?” said Marrero, without mentioning the low salaries in a country with an increasingly weakened currency and where the minimum wage of 2,100 Cuban pesos ( CUP) is equivalent to about eight dollars. Likewise, the official clarified that the Government will increase electricity rates by 25% for Cuban households considered high consumers, which exceed the consumption of 500 kWh.
As a result of the rise in fuel prices, Marrero acknowledged that transportation rates will increase. In addition, prices will be raised to the non-metered water rate, that of users who do not have a meter to measure, to 21.24 CUP, because, according to the official, the current rate of 7 CUP (less than a cent on the dollar) does not stimulates savings. Next year, likewise, the price of cigarettes and tobacco, the price of liquefied gas cylinders, as well as those of green medicine (medicinal plants) in the country will increase.
Regarding remittances, one of the main supports of the economy and carried on the backs of Cuban exiles, he indicated that it was a priority for the country to recover these flows, as well as increase the income of foreign currency, recover tourism and boost production. of nickel, tobacco and rum. Marrero explained that, in order to encourage national production, the payment of tariffs on imports of raw materials and intermediate goods will be reduced by 50%; and on the other hand, tariff rates will be raised on the import of some Cuban products such as cigarettes, rums and beers. He also stressed that electronic commerce will be promoted with payments from abroad and that measures will be implemented so that non-state companies can carry out their imports with payments from Cuba.
The tariff exemption for the importation of food, hygiene and medicines, which was to expire on December 31 and which authorizes Cubans to import non-commercial items, without limits on their value and exempt from the payment of customs duties, will be again extended. However, Marrero added that the Government will work to increase the offer in stores in MLC (Freely Convertible Currency) so that Cubans can access the network of national stores. In the former, you can only purchase with credit cards backed by dollars or other foreign currencies.
To workers in the Health and Education sectors, Marrero announced that payment for night guards will be increased, based on years of service and amount of work. The prime minister also referred to the immigration crisis due to which 400,000 Cubans have left the island in the last two years. He said that in much of the aforementioned “are the causes that cause the exodus of professionals and young people from the state sector to the non-state sector and the tendency to seek life projects abroad.” According to him, the announced measures have the purpose precisely of “restoring the macroeconomic requirements that make it possible to guarantee a favorable environment for economic growth, development and the process of socialist construction.”
Subscribe here to newsletter from EL PAÍS América and receive all the key information on current events in the region
#Cuban #Government #announces #package #economic #measures #life #island #expensive