Cuba: Economy and Trade

Cuba operates a centrally planned economy in which the state controls most production, though limited private enterprise has expanded since reforms began in the 2010s. Key sectors include tourism, nickel mining, pharmaceuticals, and agriculture, particularly sugar and tobacco. Chronic shortages of fuel, food, and other basic goods, worsened by inefficiencies in state-run industries and the long-standing US embargo, remain persistent economic challenges.

Cuba's principal trading partners include Venezuela, China, Spain, and Russia, with Venezuela historically providing subsidized oil in exchange for Cuban medical services abroad. The government has sought foreign investment through special development zones and joint ventures, particularly in tourism infrastructure, while maintaining state control over strategic industries. The Cuban peso and a dual-currency legacy have complicated monetary policy, with ongoing reforms aimed at unifying exchange rates and stabilizing the economy.