Cuba's economy shrinks

Cuba's economy shrank 0.9 percent this year due to a fall in exports to its oil-producing allies as they struggled with the long slump in global fuel prices, its economy minister told the National Assembly on Tuesday in a closed-door speech. The figure suggests the centrally planned economy contracted sharply in the second half of the year after drastically cutting imports, investment and fuel use due to a cash crunch. The government had reported 1 percent growth for the first half.
In excerpts published by official media, Economy Minister Ricardo Cabrisas told the National Assembly that the economic outlook was brighter, forecasting strong growth next year for the sugar industry and tourism. "For 2017, we expect growth of 2 percent in gross domestic product following a contraction of 0.9 percent in 2016," Cabrisas was quoted as saying by official media. The economy grew 4 percent in 2015, according to the government. Given a global drop in commodity prices, Cuba is struggling with a fall in exports of nickel, refined oil products and sugar, as well as a decline in revenue from the sale of medical services to oil-producing allies like Venezuela and Angola.