Cuba Economic Forecast

During the 1950s, Cuba was a country with a strong economy but even so, it was unequal with significant capital outflows going to foreign investors. Since that time, great progress has been seen, primarily with better income distribution. In fact, Cuba experienced one of the fastest growing economies in all of Latin America until the Soviet Union collapsed in that it was Cuba’s most prominent trading partner.

During the 1950s, Cuba was a country with a strong economy but even so, it was unequal with significant capital outflows going to foreign investors. Since that time, great progress has been seen, primarily with better income distribution. In fact, Cuba experienced one of the fastest growing economies in all of Latin America until the Soviet Union collapsed in that it was Cuba’s most prominent trading partner.

The effect on Cuba was horrific, dropping the Gross Domestic Product by 33%. From 1993 on, Cuba has worked hard to recover from the struggling economy and with great success. The country has been able to retain high levels of education and healthcare and today, Cuba is considered one of the fastest growing economies in the world. In fact, the number of doctor per capita put Cuba at number one. While significant improvements have been seen, the country still has limited capital investments, which require approval by the government. Another challenge is that the majority of production is owned and operated by the government.

Cuba GDP Forecast

Most of Cuba’s economy is state-controlled and centrally planned. Because of this, the government oversees much of what happens in this country to include approval of foreign investments and private enterprises. However, in looking at the Human Development Index or HDI, Cuba is ranked at number 51 of 182 countries, resulting in low infant/child mortality, morbidity, education, and other social and health issues. Regarding the Cuba GDP (Gross Domestic Product, Current Prices, US Dollars), after the collapse of the Soviet Union in 1993, being one of the primary trading partners, numbers declined by 35%. However, from that time to 1998, slow growth was experienced. In 2009, the country’s GDP was at $50.01 billion in US dollars. Now, with the GDP holding steady, it is expected to see some cut backs for subsidization of basic goods and services as a way of keeping the country’s expenditures under control.

Cuba Unemployment Forecast

Today, the Cuba population is estimated at just a little more than 11 million people. Interestingly, this insular nation is considered the most populous in the Caribbean, the people, as well as customs and culture is able to use diverse resources and sources. Approximately 5.07 million people in Cuba work, primarily in social services, health, and education although agriculture, tourism, industry, transport, mining, utilities, construction, and communications are also important with another 142,000 being self-employed. The Cuba unemployment rate remains around 40%, along with poverty although mostly in rural areas of the country.

Cuba Inflation Rate Forecast

To help improve the Cuba inflation rate, the government continues working hard to balance economic loosening along with a desire for political control to have a firmer grip. One change has been reforms specifically meant to increase enterprise efficiency, as well as overcome the challenge of food, consumer goods, and services shortages. The most recent numbers show the information rate for this country is at 4.3%, which is an increase from 2008 when numbers were reported at 3.4%.

Cuba Current Account Balance Forecast

Experts look at several aspects of a country’s economy as a means of determining how that country will compare to other countries in the future. One of these is the current account balance. In looking at the Cuba current account balance, 2009 reported a negative figure of $1.18 billion in US dollars. Compared to the prior year, the number changed from minus $2.58 billion.