Cuba Economy 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):
$46.22 billion (2006 est.)

GDP (official exchange rate):
$40 billion (2006 est.)

GDP - real growth rate:
11.1% (2006 est.)

GDP - per capita (PPP):
$4,100 (2006 est.)

GDP - composition by sector:
agriculture: 4%
industry: 24.8%
services: 71.2% (2006 est.)

Labor force:
4.847 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.)

Population below poverty line:
NA%

Household income or consumption by percentage share:
lowest 10%: NA%
highest 10%: NA%

Inflation rate (consumer prices):
6.2% (2006 est.)

Investment (gross fixed):
12.1% of GDP (2006 est.)

Budget:
revenues: $32.41 billion
expenditures: $34.28 billion (2006 est.)

Agriculture - products:
sugar, tobacco, citrus, coffee, rice, potatoes, beans; livestock

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

Industrial production growth rate:
17.6% (2006 est.)

Electricity - production:
14.65 billion kWh (2005)

Electricity - consumption:
12.27 billion kWh (2005)

Electricity - exports:
0 kWh (2005)

Electricity - imports:
0 kWh (2005)

Oil - production:
72,000 bbl/day (2005 est.)

Oil - consumption:
204,000 bbl/day (2004 est.)

Oil - exports:
NA bbl/day

Oil - imports:
NA bbl/day

Oil - proved reserves:
260.5 million bbl (1 January 2006)

Natural gas - production:
383.6 million cu m (2005)

Natural gas - consumption:
383.6 million cu m (2005)

Natural gas - exports:
0 cu m (2005 est.)

Natural gas - imports:
0 cu m (2005)

Natural gas - proved reserves:
67.89 billion cu m (1 January 2006 est.)

Current account balance:
$146 million (2006 est.)

Exports:
$2.98 billion f.o.b. (2006 est.)

Exports - commodities:
sugar, nickel, tobacco, fish, medical products, citrus, coffee

Exports - partners:
Netherlands 21.8%, Canada 21.6%, China 18.7%, Spain 5.9% (2006)

Imports:
$10.17 billion f.o.b. (2006 est.)

Imports - commodities:
petroleum, food, machinery and equipment, chemicals

Imports - partners:
Venezuela 26.6%, China 15.6%, Spain 9.6%, Germany 6.4%, Canada 5.6%, Italy 4.4%, US 4.3%, Brazil 4.2% (2006)

Economic aid - recipient:
$87.8 million (2005 est.)

Reserves of foreign exchange and gold:
$3.447 billion (2006 est.)

Debt - external:
$16.62 billion (convertible currency); another $15-20 billion owed to Russia (2006 est.)

Stock of direct foreign investment - at home:
$11.24 billion (2006 est.)

Stock of direct foreign investment - abroad:
$4.138 billion (2006 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.