Cuba

Economic and political outline

Economic indicators | Foreign Trade in figures | Sources of general economic information | Political outline

Economic indicators

The Cuban economy continues to suffer from the consequences of the collapse of the Soviet bloc in 1991, as well as from the trade boycott imposed by the United States. Fidel Castro's withdrawal in July 2006 had raised hopes that the regime was opening up politically and economically. Yet very little has changed in two years and despite structural reforms undertaken by the government to improve the productivity of food, consumer goods and services as well as to solving shortage problems, the standard of life for the Cuban population still remains very low. The state control on the economy and the continued presence of restrictions on the freedom to trade cause great obstacles to the commercial and economic development of the country.

Main indicators	2003	2004	2007	2008
GDP (billions USD)	-	-	-	159.70
Unemployment rate (% of the labor force)	1.9	1.9	1.8	-

Source: CIA - The world factbook

Note: (e) Estimated data

Main sectors of industry

The primary sector employs 20% of the population. The main production is sugar and sugar cane (12.5 billion tons of sugar cane produced in 2005) and covers a third of the cultivated surface area.
Industry is partly dedicated to the processing of agricultural products but also to the production of cement and agricultural machinery. Additionally, Cuba has significant mineral resources. Nickel export is the country's highest foreign currency earner. The country also has other minerals such as gold (1.55 million ounces of gold) and copper (3 deposits).
The service industry employs more than 63% of the active population. The growth of this sector is accelerated by the fast development of the tourism industry in these past years (2,319,334 foreign visitors in 2005 ie an increase of 13.3% in relation to 2004).

Breakdown of economic activity by sector	Agriculture	Industry	Services
Employment by sector (in % of total employment)	21.2	19.4	59.4
Value added (in % of GDP)	-	-	-
Value added (annual % change)	-	-	-

- last available data.

Indicator of economic freedom

Score:: 27.9/100
Position:: repressed
World Rank:: 177 out of 179
Regional Rank:: 29 out of 29

Distribution of Economic freedom in the world
Source: 2008 Index of Economic freedom, Heritage Foundation

Country risk

See the country risk analysis provided by Ducroire.

Foreign trade in figures

The embargo upheld by the U.S.A has hampered Cuba's external trade. However, in the tourism, energy and telecommunications sectors, foreign investments though subject to very strict rules, are significant. The EU accounts for about half of Cuba’s external trade. Cuba’s top three export partners are: the Netherlands, Canada, and Venezuela. It exports mainly sugar, nickel, tobacco, medical drugs and fishing products. The country's top three import partners are: Venezuela, Spain and China. Cuba mainly imports mineral fuels & oils, machinery, electric & electronic equipment, cereals, and vehicles.

Main partner countries

Main customers (% of exports)	2006
Venezuela	12.8%
Spain	4.1%
Russia	3.2%
Bolivia	1.6%
France	1.5%
Mexico	1.2%
Dominican Republic	1.0%
Netherlands	0.9%
Cyprus	0.9%
Brazil	0.8%
China	0.8%
Germany	0.7%
Canada	0.7%
Italy	0.5%
Panama	0.5%
Haiti	0.4%
United Kingdom	0.4%
Hong Kong	0.4%
Switzerland	0.4%
Honduras	0.3%
See more countries	76.7%

Main suppliers (% of imports)	2006
China	13.4%
Spain	7.7%
Germany	5.7%
United States	4.5%
Italy	3.8%
Canada	3.5%
Brazil	3.1%
Mexico	2.1%
Venezuela	1.8%
France	1.8%
Vietnam	1.7%
South Korea	1.6%
Japan	1.6%
Russia	1.4%
Argentina	1.0%
Netherlands	0.6%
New-Zealand	0.5%
Panama	0.5%
Chile	0.5%
United Kingdom	0.4%
See more countries	65.1%

Source: Comtrade

Main products

Main exports (% of exports)	2006
Pharmaceutical productsPharmaceutical products	9.4%
Tobacco and manufactured tobacco substitutesTobacco and manufactured tobacco substitutes	7.4%
Aircraft, spacecraft, and parts thereofAircraft, spacecraft, and parts thereof	3.0%
Optical, photographic, cinematographic, measuring,...Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof	3.0%
Fish and crustaceans, molluscs and other aquatic...Fish and crustaceans, molluscs and other aquatic invertebrates	2.0%
Nuclear reactors, boilers, machinery and...Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof	1.9%
Electrical machinery and equipment and parts...Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles	1.6%
Iron and steelIron and steel	1.6%
Salt; sulphur; earths and stone; plastering...Salt; sulphur; earths and stone; plastering materials, lime and cement	1.3%
Copper and articles thereofCopper and articles thereof	1.2%
Furniture; bedding, mattresses, mattress supports,...Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated name-plates and the like; prefabricated buildings	0.9%
Aluminium and articles thereofAluminium and articles thereof	0.6%
Preparations of vegetables, fruit, nuts or other...Preparations of vegetables, fruit, nuts or other parts of plants	0.3%
Printed books, newspapers, pictures and other...Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans	0.3%
Miscellaneous chemical productsMiscellaneous chemical products	0.3%
Organic chemicalsOrganic chemicals	0.2%
Vehicles other than railway or tramway...Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof	0.2%
Dairy produce; birds' eggs; natural honey; edible...Dairy produce; birds' eggs; natural honey; edible products of animal origin, not elsewhere specified or included	0.2%
Edible fruit and nuts; peel of citrus fruits or...Edible fruit and nuts; peel of citrus fruits or melons	0.2%
Beverages, spirits and vinegarBeverages, spirits and vinegar	0.2%
See more products	75.1%

Main imports (% of imports)	2006
Electrical machinery and equipment and parts...Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles	13.1%
Nuclear reactors, boilers, machinery and...Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof	10.5%
CerealsCereals	3.6%
Optical, photographic, cinematographic, measuring,...Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof	3.0%
Vehicles other than railway or tramway...Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof	2.8%
Plastics and articles thereofPlastics and articles thereof	2.2%
Articles of iron or steelArticles of iron or steel	1.8%
Meat and edible meat offalMeat and edible meat offal	1.6%
Dairy produce; birds' eggs; natural honey; edible...Dairy produce; birds' eggs; natural honey; edible products of animal origin, not elsewhere specified or included	1.5%
Aluminium and articles thereofAluminium and articles thereof	1.2%
Furniture; bedding, mattresses, mattress supports,...Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated name-plates and the like; prefabricated buildings	1.2%
Iron and steelIron and steel	1.1%
Paper and paperboard; articles of paper pulp, of...Paper and paperboard; articles of paper pulp, of paper or of paperboard	1.1%
Miscellaneous chemical productsMiscellaneous chemical products	1.0%
Rubber and articles thereofRubber and articles thereof	1.0%
Edible vegetables and certain roots and tubersEdible vegetables and certain roots and tubers	0.9%
Footwear, gaiters and the like; parts of such...Footwear, gaiters and the like; parts of such articles	0.9%
Inorganic chemicals; organic or inorganic...Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes	0.9%
Oil seeds and oleaginous fruits; miscellaneous...Oil seeds and oleaginous fruits; miscellaneous grains, seeds and fruit; industrial or medicinal plants; straw and fodder	0.8%
Products of the milling industry; malt; starches;...Products of the milling industry; malt; starches; inulin; wheat gluten	0.7%
Tanning or dyeing extracts; tannins and their...Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other colouring matter; paints and varnishes; putty and other mastics; inks	0.7%
Pharmaceutical productsPharmaceutical products	0.6%
Aircraft, spacecraft, and parts thereofAircraft, spacecraft, and parts thereof	0.6%
Preparations of meat, of fish or of crustaceans,...Preparations of meat, of fish or of crustaceans, molluscs or other aquatic invertebrates	0.5%
Ceramic productsCeramic products	0.5%
Organic chemicalsOrganic chemicals	0.5%
FertilizersFertilizers	0.5%
Articles of apparel and clothing accessories, not...Articles of apparel and clothing accessories, not knitted or crocheted	0.5%
Miscellaneous articles of base metalMiscellaneous articles of base metal	0.4%
Animal or vegetable fats and oils and their...Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes	0.4%
Copper and articles thereofCopper and articles thereof	0.4%
Tools, implements, cutlery, spoons and forks, of...Tools, implements, cutlery, spoons and forks, of base metal; parts thereof of base metal	0.4%
Glass and glasswareGlass and glassware	0.4%
Residues and waste from the food industries;...Residues and waste from the food industries; prepared animal fodder	0.4%
Articles of apparel and clothing accessories,...Articles of apparel and clothing accessories, knitted or crocheted	0.4%
Other made-up textile articles; sets; worn...Other made-up textile articles; sets; worn clothing and worn textile articles; rags	0.4%
Wood and articles of wood; wood charcoalWood and articles of wood; wood charcoal	0.3%
Preparations of cereals, flour, starch or milk;...Preparations of cereals, flour, starch or milk; pastrycooks' products	0.3%
Soap, organic surface-active agents, washing...Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, modelling pastes, 'dental waxes' and dental preparations with a basis of plaster	0.3%
Articles of stone, plaster, cement, asbestos, mica...Articles of stone, plaster, cement, asbestos, mica or similar materials	0.3%
Salt; sulphur; earths and stone; plastering...Salt; sulphur; earths and stone; plastering materials, lime and cement	0.3%
Fish and crustaceans, molluscs and other aquatic...Fish and crustaceans, molluscs and other aquatic invertebrates	0.3%
Miscellaneous edible preparationsMiscellaneous edible preparations	0.2%
CottonCotton	0.2%
Preparations of vegetables, fruit, nuts or other...Preparations of vegetables, fruit, nuts or other parts of plants	0.2%
Miscellaneous manufactured articlesMiscellaneous manufactured articles	0.2%
Essential oils and resinoids; perfumery, cosmetic...Essential oils and resinoids; perfumery, cosmetic or toilet preparations	0.2%
Railway or tramway locomotives, rolling-stock and...Railway or tramway locomotives, rolling-stock and parts thereof; railway or tramway track fixtures and fittings and parts thereof; mechanical (including electro-mechanical) traffic signalling equipment of all kinds	0.2%
Coffee, tea, maté and spicesCoffee, tea, maté and spices	0.2%
Man-made staple fibresMan-made staple fibres	0.2%
Toys, games and sports requisites; parts and...Toys, games and sports requisites; parts and accessories thereof	0.1%
Articles of leather; saddlery and harness; travel...Articles of leather; saddlery and harness; travel goods, handbags and similar containers; articles of animal gut (other than silkworm gut)	0.1%
Beverages, spirits and vinegarBeverages, spirits and vinegar	0.1%
Mineral fuels, mineral oils and products of their...Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes	0.1%
See more products	67.1%

Source: Comtrade

See more products: More imports (Intracen Data)
More exports (Intracen Data)

Sources of general economic information

Ministries: Ministry of Finance and Prices
Ministry of Foreign Affairs
Ministry of Primary Industries
Statistical Office: National Bureau of Statistics
Central Bank: Central Bank of Cuba
Stock Exchange
Search Engines: CubaWeb
Caribseek
Islagrande
Sitios Cubanos (Spanish only)
Economic portals: Cuban portal - general (Spanish Only)
Cuba Daily
Information portal on cuban economy and investment methods

Political outline

Executive Power: The president is both the head of state and government. He is elected by the National Assembly for a term of five years. The president has executive powers and is also the commander-in-chief of the armed forces. He controls most aspects of Cuban life through the Cuban Communist Party (PCC).
Legislative Power: Legislative powers are vested in the National Assembly whose members are elected by popular Municipal Assemblies . Its 614 members are elected for 5 years in a two-round system with single candidate ballots.
Main political parties: The Cuban Constitution only recognizes one legal party: the Cuban Communist Party (PCC) whose secretary is Fidel Castro Ruiz.
Current political leaders: Until 2006, Fidel Castro was the main political figure in Cuba and was the record holder of the longest stay in power (45 years in power without sharing power or multi-party elections). In July 2006, he handed over the power to his brother Raul, former defence Minister, because of health reasons. He is still currently the dominant political figure.
Next election dates: Presidential: 2013
Legislative: 2013
Municipal: 2013