Cuban Economy in 2016

The complex scenario inside and outside Latin America is affecting the goal of a country which experts say must increase its GDP in over 5 percent to recover in a short period its productive capacities and assure its sustainable development.

According to statistics that were offered by the Cuban National Assembly, local financial limitations are projected associated to the fall of earnings of the traditional exports. For example, nickel, due to the low prices in the international market.

We must also add cooperation ties with countries like Venezuela, which is currently facing a complex political process due to the fall of oil prices in the world.

Predictions for the South American nation, whose economy will decrease according to the Economic Commission for Latin America, CEPAL, and point out the importance to efficiently take advantage of the low prices of the oil, which is affecting the economy of Cuba’s second trading partner, reduces the imports in the amount of food, raw materials and manufacturing products.

This situation forces the work of the island’s foreign trade that will have to demand more research and planning, prioritizing imports allowing more efficiency of the country’s economy dedicated to the sector even more so when 50 percent of the imports will be through credits.

Cuba must also take advantage of a new chapter that has repercussions in the island’s credibility in international finances starting from the agreements reached in the negotiations process of economic commitments with Russia, Japan, Spain, Mexico and another 14 creditor countries, member of the Club of Paris.

Domestically, Cuba has challenges ahead with an economy called on to strengthen its efficiency and continue testing the capacity of the Cuban business sector to intelligently conduct the path of it entities and banish once and for all the habit of waiting for signs from heaven.

Measures were implemented four years ago to improve the business sector with more autonomy and power; however, to make use of the opportunities that gives such “independence” requires and it has been demonstrated, a change in the philosophy of work.

Managers must learn to successfully administrate, where to invest and how to manage the inventory and accounts in order to have positive outcomes.

According to estimates, investments will grow to 7.841 million pesos this year, superior to the 6.9 million planned in 2015, and a total of 58 percent associated to key sectors of the country’s development like tourism, energy and oil and agricultural programs.

This is good news assuring earnings for the future stages after such a negative cycles. It will be important to eradicate inadmissible inefficiencies that, like ghosts still roam in some sectors.

Motivations aimed at achieving better results is reflected in the correct application of Law 17 while workers will receive salaries according to their production and responsibilities.

The Socialist State enterprise will have to surpass the many challenges ahead amidst the continuation of the dual currency in their goal of assuring a success of the national economy.

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