Cuba Economy Profile 2007

Economy - overview

The government continues to balance the need for economic loosening against a desire for firm political control. It has rolled back limited reforms undertaken in the 1990s to increase enterprise efficiency and alleviate serious shortages of food, consumer goods, and services. The average Cuban's standard of living remains at a lower level than before the downturn of the 1990s, which was caused by the loss of Soviet aid and domestic inefficiencies. Since late 2000, Venezuela has been providing Cuba oil on preferential terms, and it currently supplies about 98,000 barrels per day of petroleum products. Cuba has been paying for the oil, in part, with the services of Cuban personnel, including some 20,000 medical professionals. In 2006, high metals prices continued to boost Cuban earnings from nickel and cobalt production. Havana continued to invest in the country's energy sector to mitigate electrical blackouts that have plagued the country since 2004.

GDP (purchasing power parity)

$45.51 billion (2006 est.)

GDP (official exchange rate)

$40 billion (2006 est.)

GDP - real growth rate

9.5% (2006 est.)

GDP - per capita (PPP)

$4,000 (2006 est.)

GDP - composition by sector

agriculture: 5.1%
industry: 27.2%
services: 67.6% (2006 est.)

Population below poverty line

NA%

Household income or consumption by percentage share

lowest 10%: NA%
highest 10%: NA%

Inflation rate (consumer prices)

5% (2006 est.)

Investment (gross fixed)

11.9% of GDP (2006 est.)

Labor force

4.82 million
note: state sector 78%, non-state sector 22% (2006 est.)

Labor force - by occupation

agriculture: 20%
industry: 19.4%
services: 60.6% (2005)

Unemployment rate

1.9% (2006 est.)

Budget

revenues: $35.07 billion
expenditures: $36.41 billion; including capital expenditures of $NA (2006 est.)

Industries

sugar, petroleum, tobacco, construction, nickel, steel, cement, agricultural machinery, pharmaceuticals

Industrial production growth rate

17.6% (2006 est.)

Electricity - production

15.34 billion kWh (2005)

Electricity - consumption

14.1 billion kWh (2004)

Electricity - exports

0 kWh (2004)

Electricity - imports

0 kWh (2004)

Oil - production

72,000 bbl/day (2005 est.)

Oil - consumption

204,000 bbl/day (2004 est.)

Oil - imports

NA bbl/day

Oil - exports

NA bbl/day

Oil - proved reserves

259 million bbl (2006 est.)

Natural gas - production

704 million cu m (2004)

Natural gas - consumption

704 million cu m (2004)

Natural gas - exports

0 cu m (2004 est.)

Natural gas - imports

0 cu m (2004 est.)

Natural gas - proved reserves

70.79 billion cu m (1 January 2005 est.)

Current Account Balance

-$1.218 billion (2006 est.)

Agriculture - products

sugar, tobacco, citrus, coffee, rice, potatoes, beans; livestock

Exports

$2.956 billion f.o.b. (2006 est.)

Exports - commodities

sugar, nickel, tobacco, fish, medical products, citrus, coffee

Exports - partners

Canada 20.9%, Netherlands 20.9%, China 18.1%, Spain 5.7% (2006)

Imports

$9.51 billion f.o.b. (2006 est.)

Imports - commodities

petroleum, food, machinery and equipment, chemicals

Imports - partners

China 21.6%, Spain 13.3%, Germany 8.8%, Canada 7.6%, Italy 6.1%, US 5.9%, Brazil 5.2%, Mexico 4.7% (2006)

Reserves of foreign exchange and gold

$2.618 billion (2006 est.)

Debt - external

$15.15 billion (convertible currency); another $15-20 billion owed to Russia (2006 est.)

Economic aid - recipient

$68.2 million (1997 est.)

Currency (code)

Cuban peso (CUP) and Convertible peso (CUC)

Exchange rates

Convertible pesos per US dollar - 0.9231 (2006)
note: Cuba has three currencies in circulation: the Cuban peso (CUP), the convertible peso (CUC), and the US dollar (USD), although the dollar is being withdrawn from circulation; in April 2005 the official exchange rate changed from $1 per CUC to $1.08 per CUC (0.93 CUC per $1), both for individuals and enterprises; individuals can buy 24 Cuban pesos (CUP) for each CUC sold, or sell 25 Cuban pesos for each CUC bought; enterprises, however, must exchange CUP and CUC at a 1:1 ratio.

Fiscal year

calendar year