HAVANA, May perhaps 25 (Reuters) – There is no swift repair for Cuba’s sluggish economy, its economy minister stated on Thursday, as inflation, fuel shortages, declining agricultural output and a money crunch hamper output and continue to fuel discontent in the communist island nation.

Economy Minister Alejandro Gil, in an hour-extended presentation to newly elected lawmakers, stated the island has also tiny foreign currency to spend for the preferred fuel, meals and agricultural imports, which means Cuba will increasingly struggle with what it can generate at residence. .

“If we cannot generate it, we will not have it,” Gill told lawmakers, referring especially to some meals solutions and urging lawmakers and municipalities to give new incentives to farm production this year and subsequent.

Cuba’s serious financial crisis, amongst the worst considering that Fidel Castro’s 1959 revolution, has led to shortages of meals, fuel and medicine and contributed to a record exodus of migrants from the north to the United States.

Tourism, after a crucial driver of substantially-necessary foreign currency, is struggling to revive, with visitor numbers amongst January and April this year only half that of the exact same period in 2019, Gill stated.

This has left the nation quick of the foreign currency important to import important agricultural supplies such as fertilizer and animal feed.

Pork production for the state, for instance, has fallen from a record 199.7 tonnes in 2017 to just 16 tonnes in 2022, Gill stated, as inputs dried up. Numerous fruits and vegetables fared just as badly, he stated.

Fuel that could otherwise enable increase farm production and provide goods to market place has been diverted to energy generation, Gill stated. Cuba employed practically twice as substantially diesel as planned for electrical energy production in the 1st 4 months of 2023, the Minister of Economy added.

Increasing meals rates, due to inefficiencies and dwindling production, have far outstripped the buying energy of most Cubans, Gil stated, leaving lots of with wages that do not cover their “simple demands.”

Cuba blames substantially of its woes on a Cold War-era trade embargo, though best officials have increasingly urged Cubans to discover new methods to circumvent the sanctions.

Reporting by Dave Sherwood. Editing by Bill Berkrot

Our Requirements: Thomson Reuters Trust Principles.

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