Economy - overview The state plays the primary role in the economy and controls practicallyall foreign trade. The government has undertaken several reforms in recentyears to stem excess liquidity, increase labor incentives, and alleviate seriousshortages of food, consumer goods, and services. The liberalized agriculturalmarkets introduced in October 1994, at which state and private farmers sellabove-quota production at unrestricted prices, have broadened legal consumptionalternatives and reduced black market prices. Government efforts to lowersubsidies to unprofitable enterprises and to shrink the money supply causedthe peso's black market value to move from a peak of 120 to the dollar inthe summer of 1994 to a low of 18-20 to the dollar in late September beforeclimbing to 20-21 at the end of 1996. New taxes helped drive down the numberof legally registered self-employed workers from 208,000 in January 1996 to180,000 by December. Havana announced in 1995 that GDP declined by 35% during1989-1993, the result of lost Soviet aid and domestic inefficiencies. Thedrop in GDP apparently halted in 1994, when Cuba reported a 0.7% growth. Governmentofficials claimed that GDP increased by 2.5% in 1995 and 7.8% in 1996. Exportearnings rose an estimated 40% in 1996 to $2.1 billion, largely on the strengthof increased sugar shipments to Russia and higher nickel production througha joint venture with a Canadian firm. With the economic recovery, importsrose for the second straight year, growing by an estimated 26% to $3.5 billion. Living standards for the average Cuban, however, have not improved significantly.

GDP purchasing power parity - $16.2 billion (1996 est.)

GDP - real growth rate 7.8% (1996 est.)

GDP - per capita purchasing power parity - $1,480 (1996 est.)

GDP - composition by sector
agriculture: 7%
industry: 31%
services: 62% (1996 est.)

Inflation rate - consumer price index NA%

Labor force
total : 4.71 million economically active population (1989); 3,527,000 employedin state civilian sector (1989)
by occupation: services and government 30%, industry 22%, agriculture 20%, commerce11%, construction 10%, transportation and communications 7% (June 1990)

Unemployment rate NA%

Budget
revenues: $NA
expenditures: $NA, including capital expenditures of $NA

Industries sugar, petroleum, food, tobacco, textiles, chemicals, paper and woodproducts, metals (particularly nickel), cement, fertilizers, consumer goods,agricultural machinery

Industrial production growth rate 6% (1995 est.)

Electricity - capacity 4.082 million kW (1995)

Electricity - production 11.189 billion kWh (1995)

Electricity - consumption per capita 822 kWh (1995 est.)

Agriculture - products sugarcane, tobacco, citrus, coffee, rice, potatoes and other tubers,beans; livestock

Exports
total value: $2.1 billion (f.o.b., 1996 est.)
commodities: sugar, nickel, tobacco, shellfish, medical products, citrus, coffee
partners : Canada 23%, Russia 21% China 7% (1996 est.)

Imports
total value: $3.5 billion (c.i.f., 1996 est.)
commodities : petroleum, food, machinery, chemicals
partners: Russia 14%, Spain 13%, Mexico 11% (1996 est.)

Debt - external $10.5 billion (convertible currency, 1996); another $20 billion owedto Russia (1996)

Economic aid
recipient: ODA, $NA

Currency 1 Cuban peso (Cu$) = 100 centavos

Exchange rates Cuban pesos (Cu$) per US$1 - 1.0000 (non-convertible, official rate,linked to the US dollar)

Fiscal year calendar year

NOTE: The information regarding Cuba on this page is re-published from the 1997 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Cuba Economy 1997 information contained here. All suggestions for corrections of any errors about Cuba Economy 1997 should be addressed to the CIA.