Economy

Cuba's Economy

Cuba has a relatively small economy compared to other countries globally, with a very low GDP per capita of $12,100. GDP per capita is a measure of a country's economic output per person. It's calculated by dividing a country's total GDP by its population. Cuba has slow economic growth, often considered a developing or low-income economy due to its limited economic output and state-controlled system. Despite the size, Cuba faces significant economic challenges including shortages of basic goods and high inflation. Haiti, the closest country to Cuba, has a GDP per capita of $1,705.78, which is about 10% of the world average. Some major exports from Cuba include tobacco, nickel, and zinc ore. Although the main export is Sugar. Among the most important imports are mineral fuels, lubricants, foods, machinery and transport equipment, and chemicals. Cuba has many major industries including Cuba Petróleo Unión, the biggest national oil company, EGREM, a record label in the consumer services industry, and Cimex Cuba's largest commercial corporation. Cuba’s biggest industry is agriculture. Their exports like sugar and minerals are all products of the agricultural industry. The economy of Cuba is a planned economy dominated by state-run enterprises. Arable land covers nearly one-third of Cuba. The soil is highly fertile, allowing up to two crops per year in a certain area, but the highly variable nature of annual precipitation has historically plagued agriculture. Subterranean waters are important for irrigation. A small but increasing share of crops is produced on private land or by cooperatives that are not owned by the state. Under Raúl Castro’s rule, some private farmers have been permitted to cultivate unused government land to increase food production. Cuba's main trading partners include China, Spain, Venezuela, Brazil, and the European Union. Cuba's economy is a centrally planned socialist system dominated by state-owned enterprises, though the country still faces challenges like limited foreign investment and struggles with economic growth due to its heavily controlled nature.