LatinNews Daily - 21 December 2023

*Cuba’s Prime Minister Manuel Marrero has unveiled an economic stabilisation plan to be applied in 2024 as part of efforts to revive the island’s flagging economy, which remains affected by the impact of the coronavirus (Covid-19) pandemic, US economic sanctions, and devastation wreaked last year by hurricanes, among other things. The plan provides for a reduction of electricity subsidies, with electricity tariffs for the residential sector who consume 500kWh upwards set to face a 25% increase. According to the government, 94% of households consume 300kWh or less. Marrero also announced the government would reconsider tax exemptions to alleviate financial burdens on the State while there are also increases earmarked for water for unmetered customers, transport, and liquified gas, where the cost of a 10kg cylinder will rise from CUP180 (US$7.50) to CUP225, and a 45 kg cylinder, from CUP810 to CUP1,014. Also yesterday Economy Minister Alejandro Gil said Cuba’s GDP could contract by 1-2% this year, (having previously forecast GDP growth of 3%) although he forecast 2% growth for 2024. Gil said total exports in 2023 were projected to come in at US$9.07bn, US$770m less than forecast, and down from US$12bn in 2019 while inflation was expected to close the year at 30%. He also forecast that exports in 2024 would come in at US$9.70bn, and tourism arrivals at 3.1m, up 27% on 2023 although still just 73% of that registered in 2019, prior to the pandemic.