The goals include promoting the country’s macroeconomic stabilization, consolidating the restructuring of the economy’s foreign exchange allocation mechanism, making further progress in restoring the capacity of the national electricity system and accelerating the introduction of renewable energy sources throughout the year.
At the same time, the reduction of inequalities is to be advanced, the process of decentralizing powers to the territories is to be consolidated and the comprehensive restructuring of the socialist state enterprise is to be promoted.
He stressed that in late April Exports of goods, that is, goods, amounted to $728 million, representing 103 percent compliance with the plan for the period. He recalled that the economic plan is not linear due to the adaptability of the exported products and the timing of those exports. “That’s 27.5% of the annual plan.”
Tourism, he stressed, remains the main way to boost economic recovery. At the end of April, 984,116 tourists had visited the country, which is 28% compared to the annual plan, which envisages an arrival of 3.5 million visitors. In relation to the same period last year, it is 119% and compared to 2019, the year before the pandemic, it is 51.1%.
The finance minister said so On May 3, the first million visitors arrived in the country. “The tourist visitor plan for 2023 is demanding and not only depends on us, but we are on this path because it is important to accompany and drive the gradual recovery of the economy.”
On the recovery of the markets he said Canada and Russia are the most important.
Across fromThe country’s goods and services department reported at the end of April that we achieved 24% of the annual plan and we’re $23.6 million below guidance.
Foreign trade transactions conducted by non-governmental forms of administration generated $4,788,500 in exports and $270,294,100 in imports. Of this, 61.6% was carried out by MSMEs: In the first four months of the year, 166.6 billion dollars were imported through these forms of management.
“We have noticed in recent years that imports from non-governmental forms of administration have been increasing month by monthIt has surpassed 80 million due to the pace that has taken place over the past two months. At this rate, we will surpass the 100 million mark in the course of the year.”
He added that There is a trend towards importing end products, not inputs and raw materials.
He explained that these ready-to-sell goods were imported They are often offered for sale to the population at high prices. “This is a matter that we need to delve into because while it is recognized that the new forms of management can allow imports for their production, there has been a trend towards imports for direct marketing in recent months.”
He pointed out that the non-governmental sector must contribute to the development of the country’s economy and current distortions must be corrected.
The Deputy Prime Minister reminded that the ANPP announced the reasons for starting foreign exchange market operations in August 2022, since the country has practically no national currency and it is necessary for the country’s economic development. “It has been approved to set up a foreign exchange market with an exchange rate higher than 24, i.e. 1 USD for 120 CUP.”
Got that sorted It’s a limited market, we can’t say that it works with open access rules. “There are restrictions on the sale of currency, the maximum value sold is up to one hundred dollars, there are queues that last more than a hundred days to be able to buy the currency in the cadecas.”
Gil Fernández added that since then we still do not have access to purchase all currencies moving in the country An illegal market is maintained with an exchange rate of more than 180 or 190 Cuban pesos for 1 USD.
“Even with these shortcomings, we are buying 10 times more currency than we were buying with the $1 for 24 CUP exchange rate.”
The finance minister said so These captured currencies are invested in the reactivation of a number of state and national industries, such as electronics and agriculture. Also when shopping for products such as rice, pork, toilet.
“Forex market works from its own sources. If we buy more, we bet more, and if we buy less, we have less chance of stimulating national industry and selling foreign exchange to the people.”
He pointed out that we have to face the informal market.
In macroeconomic terms, he said: A number of measures have been taken to encourage government purchases of foreign currency.
He reiterated that The foreign exchange market has led to results in the concept of increasing the purchase of foreign currency by the state and it has remained at the same level of up to $100 per purchase, but has recognized that selling foreign exchange to the population is not enough.
The Minister for Economy and Planning said this at another point in his speech In order to advance the digitization of financial transactions and increase the range of goods and services, the mobile wallet ETECSA was launched.
He explained that this allows electronic payments in both Cuban pesos and foreign currency, and eliminates the need for a magnetic card.
Alejandro Gil He recognized that there is a shortage of money in paper currency because the demand is great and the capacity we have to introduce this paper currency does not meet the existing demand. “You need to invest in banking transactions because you gain transparency, security, control and the ability to see how tax matters are progressing.”
He pointed out that printing physical banknotes is expensive in terms of issuance, storage and handling.
He reminded that since April 11, the banking system has been accepting cash deposits in dollars on cards and accounts with MLC. He added that This measure has also allowed the state to confiscate foreign currency.
“We know that there are still problems in the country, because in some cases payment by bank transfer is not accepted and in some places there is resistance to mobile phone acceptance.”
Regarding the behavior of the socialist state company, he said that In the first four months of 2023, 84% of companies have achieved positive resultsthat is, they generate profits, but this does not mean that they operate at maximum capacity or are efficient and provide goods and services to the economy.
He reported that there were 285 companies with losses, 126 fewer than those that were in this position at the end of April 2022.
Gil Fernández confirmed that among these 285 there is still a group of companies that cannot be said a priori to be inefficient or unproductive, but that, in the interest of the country, they have limited prices so as not to contribute to inflation .
recognized that Other companies suffer losses due to lack of innovation, lack of strategic thinking, lack of managerial creativity and re-analysis.
The average salary in the state enterprise sector is 4,856 pesos.
In the country’s 573 reported state units, Decree 53 is applied, which creates simplifications that make salary organization more flexible and thus increase productivity.
“The reform of certain important activities for the country that export goods and services with closed currency systems so that they have a larger economy and do not depend on the country’s central allocation.” Progress has been made in tourism, nickel, transport and communications .”
He reported that 159 state-owned subsidiaries and 105 state-owned MSMEs were admitted. “This is a process that is becoming increasingly dynamic and represents an innovative form of the Cuban economic model.”
He added that progress is being made in dividing state-owned enterprises into different groups, as not all are equal and a single management system cannot be applied.
For example, the UNE, which is a state-owned company, is not the same as a local manufacturing company, which may have more autonomy and more decentralized pricing.
This was announced by the Deputy Prime Minister Corporate law work is progressing. Information on its placement in the legislative plan will be announced in due course.
So far this year, 8,012 new actors have been admitted to forms of non-governmental management, 7,947 MSMEs, of which 105 are state-owned and the rest private, while 65 non-agricultural cooperatives have been created.
He noted that in this scenario, 212,400 people would be employed.
“We have recognized the trend in the private sector to buy and sell end products,” he confirmed, adding There is only one business system in Cuba and it must function with the same goal, the economic and social interests of the country.
He added that the laws apply to the entire business system.
“We are facing accumulated inflation for various reasons, some of which cannot be resolved now because they are related to the purchase of commodities that we have to import at high prices.”
An oil ship for the regulated family basket cost $8 million in 2019 and now costs $16 million, he gave an example.
“The speculation is about taking advantage of the difficult situation in the country to resell the products three to four times more expensive. That doesn’t solve any problem for you. We have to face it and find a solution,” he said.
Nobody will be asked to work at a loss, he said, adding that one should not speculate and not win five times. “Excessively lucrative profits cannot exist, it is a responsibility we must face up to and will be billed and sold to the populace.”
We also have to face the deficits in agricultural production.
Practically all major productions are systematically declining. In fact, productions in 2023 will be lower than in the previous year.
One way to increase supply is through production, he said.
He said it is necessary to increase the production of food, and this is where the biggest impact on inflation is concentrated.
He recognized that speculation on food prices is one of the issues that causes the greatest resentment among the population. He reported that the production volumes of root vegetables, vegetables, eggs, milk, rice, beans, etc. have declined.
Something fundamental for the country is pork production. While almost 200,000 tons of meat were delivered to the industry in 2017, production in 2022 fell to 8,100 tons.
What happened? He explained that all tons of pork produced in 2017 came from importing soybean meal and corn. These inputs, he said, would have very high prices today. The production of these foods for animal consumption in the country should be encouraged.
Regarding the regulated family basket, he reiterated that it will cost between $1,500 and $1,600 million to maintain, “because practically everything is dependent on imports”, there are also logistical problems which, among other things, impede the transport chain from the port to the markets. In this sense, he insisted that “national production must participate more in this basic basket”.
The minister called for moving forward in each community, knowing basic food needs and assessing opportunities “to promote local development”. “On this basis we work for 2024,” he said.
Referring to the national electricity system, he noted that the impact has been achieved as planned, but there is excess diesel consumption: “We should have consumed 87,000 tons and we reached 162,000”, which has affected the amount of fuel it can accommodate the population to be sold and the one intended for transportation. “Priority has been given to minimize the impact on the power supply.”
He reported that thermal generation accounts for 40% of the total energy generation in the country and mobile generation (patanas) accounts for 25%. “Renewable energy sources are expensive. It is a big investment and maintenance is also very expensive.”
But amidst this complex situation, the Deputy Prime Minister said: The country has not given up on development and will not do so.
Elsewhere in his presentation, he referred to a group of investments he is involved in, such as noodle, beer, chocolate, powder and liquid detergent factories. In addition, the execution of the dredging of the port of Mariel, investments in the hydraulic program, where work is being done on changing the energy matrix, and investments in pumping equipment.
I confirm that There is no progress in the housing program for the population and in other social works. At the same time, a gradual process of traffic recovery is being carried out on the basis of a closed financing system, but the results of which have not yet been appreciated. “We are looking for new sources of funding for the industry.”
The minister pointed out that the cumulative inflation from January to April is 11.39%, the weighted and annual inflation is 45.4% (comparison between April 2023 and April 2022).
He said that economic activities, which have been halted during the Covid-19 phase, must be restored while social programs and care for the vulnerable remain a priority and maximum attention to the state, “but we must not lose sight of it that this requires resources.” “.
“If you inject more money with the same supply, the prices keep going up,” he stressed, adding: “We are aware that the pension levels of the people who have dedicated their lives to this revolution are not enough.”
According to the minister An increase in subsidies means a higher budget deficit and, in the long run, higher inflation. Therefore, more production, more efficiency, less resale, less diagnostics and more solutions are required.
He also pointed to macroeconomic imbalances, which are reflected in a decline in high inflation rates, price problems, loss of purchasing power and a depreciation of the informal exchange rate.
He added that progress was being made on establishing a macroeconomic coordination mechanism, which goes through the gradual reduction of the budget deficit, the adjustment of the liquidity accounts (CL), the increase in national production, the monetary and financial order in the country, the stability of the SEN and the availability of fuel and the containment of inflation, from price control and the fight against abusive speculation. “More foreign exchange earnings must be generated for the country.”
The challenges are great, he said, adding that there are many Cubans who resist the blockade every day – which is the main obstacle to the country’s development – resisting creatively and showing that it is possible, amidst difficulties to advance.
“How should we face the problems, with discouragement, with apathy, with despair, of course not. With the revolution we have and the principles we defend
But with unity, our people demand and deserve it, he concluded.
How badly is the blockade affecting the country’s economy?
Photo: Abel Padrón Padilla/ Cubadebate
Next, the President of the ANPP referred to the analysis of the guidelines adopted in the VI. Plenary session of the Central Committee of the Communist Party of Cuba, where the leadership of the PCC called for promoting the concept of creative resistance and seeking other, innovative solutions to the problems. He also called for breaking the economic blockade imposed by the United States on Cuba in order to move forward with more dynamism, speed and without brakes, banning inertia and bureaucracy, removing obstacles and complacency.
The plenary confirmed that the country needs collective solutions today, he said, announcing that next July’s regular session of the ANPP will discuss proposals to deal with the problems of the economy at the local level.
Sometimes there is a lack of rigor in exercising accountability, affirmed the President of the Cuban Legislative Assembly.
The President of the ANPP asked the Minister of Foreign Affairs, Bruno Rodríguez Parrilla, to provide an update on the impact of the United States’ economic, trade and financial blockade policies against Cuba.
The Chancellor said so The US blockade practically began with the triumph of the Cuban Revolution, with the Mallory Memorandumand then they continue to repress the country with measures aimed at lowering the level of economic relations between Cuba and the countries of the so-called socialist camp.
In the 1990s, the Torricelli Act was enacted, which directly affected grocery shopping and opportunistically coincided with the collapse of European socialism, which he said was a very aggressive moment in US politics. against our country, with an impact on Cuba’s relations with third parties.
The foreign minister added later the Helms-Burton Act came into effect, changing the extraterritorial nature of the blockade and it states that the blockade would not be lifted even if the revolution were overthrown, but would be maintained until the nationalized possessions were returned.
In the 2000s, the Bush plan was pushed through, which contains elements of tightening the blockade and even appointing an auditor for Cuba, “a man destined to intervene and govern the country.”
Therefore, according to the foreign minister, from the 1990s to 2014 there was a change in the nature of the blockade that affected Cuba’s economic relations with the outside world, which took place under much more difficult conditions.
Bush had also stopped remittances to Cuba at this point and restricted Cubans’ travel and connections to their relatives in the United States, “which always has a negative impact on the population.”
According to the head of Cuban diplomacy, in 2014, with the start of the negotiation process with Washington to normalize relations, some measures were taken and 22 bilateral cooperation agreements were concluded, which are currently in force; Migration relations are being rearranged, and the USA is even abstaining from voting on the Cuban blockade resolution in the United Nations General Assembly. In other words, it was a phase of action with tangible results for both peoples and for Cubans living in the US that was widely recognized internationally.
However, Rodríguez Parrilla stressed that the blockade will remain in place at this time, without easing financial measures, even though Cuba is excluded from the list of countries that support terrorism.
In 2015, the Secretary of State continued, the Panama Summit took place, at which Army General Raúl Castro strongly condemned the US administration’s historic policy of hostility towards the island.
Then President Barack Obama’s visit to Cuba takes place, without any significant progress in relations later becoming apparent.
After Obama’s visit, the US government focused its efforts on achieving greater influence over youth in the non-government sector of the economy. “as part of a historic bipartisan strategy aimed at destroying socialism, revolution, with measures of cultural colonization and unconventional warfare”said the Chancellor.
He argued that 2019 would start another phase with Donald Trump’s presidency, in which more than 240 measures would be imposed, 80 of them hard blockades.
As soon as Trump left the White House, he put Cuba back on the list of countries that support terrorism, the minister reminded, reiterating that these are measures aimed at harming Cuba.
Rodríguez Parrilla referred to the lawsuits filed under Title III of the Helms-Burton Act and the prosecution of companies, ships and shipping companies that deliver fuel supplies to the country, which are elements of the US strategy to harm the Cuban economy.
The arbitrary and unfair inclusion of Cuba on the US State Department’s unilateral list is one element of the US strategy to isolate Cuba and bring about its economic collapsecalled.
Added to this are the attacks on all sources of income in the country, the intimidation and extortion of third parties, and the increase in pressure on governments, banking institutions and businessmen around the world, practices that have become an integral part of US strategy against Cuba, the Secretary of State reiterated .
He added that the Article II blockade qualifies as an act of genocide since it aims to harm people, which became clear when Cuba was prevented from accessing medicines and medical equipment during the pandemic are necessary to combat the pandemic.
Now, said Rodríguez Parrilla, we are in a period of inertia where the current administration continues to apply Trump’s measures and the blockade with equal intensity. These May 2022 announcements have not come true, but the level of maximum migratory pressure is essentially maintained.
In conclusion, the Secretary of State recalled that the damage incurred in six decades of the blockade’s application amounted to $154,217.3 million. In terms of the value of gold in the international market, the blockade has caused quantifiable damage in excess of $1 trillion ($1,391,111,000,000).
The motivation is political and they aim to destroy the revolution. “They are outright lying when they claim that the measures are intended to benefit the Cuban people.”