{"id":2445,"date":"2018-11-09T03:41:35","date_gmt":"2018-11-09T03:41:35","guid":{"rendered":"http:\/\/baileyonlineclassroom.com\/theamericasblog\/?p=2445"},"modified":"2018-11-09T03:41:35","modified_gmt":"2018-11-09T03:41:35","slug":"cuba-lowers-economic-growth-forecast-as-trade-continues-to-drop","status":"publish","type":"post","link":"https:\/\/baileyonlineclassroom.com\/theamericasblog\/2018\/11\/09\/cuba-lowers-economic-growth-forecast-as-trade-continues-to-drop\/","title":{"rendered":"Cuba lowers economic growth forecast as trade continues to drop"},"content":{"rendered":"<div class=\"ArticleHeader_container\">\n<div class=\"ArticleHeader_upper-container\">\n<div class=\"foreground\">\n<div class=\"TwoColumnLayout_container TwoColumnLayout_fluid-left\">\n<div class=\"TwoColumnLayout_column TwoColumnLayout_left\">\n<div class=\"ArticleHeader_content-container\">\n<div class=\"ArticleHeader_channel\"><a href=\"https:\/\/www.reuters.com\/news\/archive\/ousivMolt\">BUSINESS NEWS<\/a><\/div>\n<div class=\"ArticleHeader_date\">NOVEMBER 4, 2018 \/ 11:25 AM \/ 4 DAYS AGO<\/div>\n<h1 class=\"ArticleHeader_headline\">Cuba lowers economic growth forecast as trade continues to drop<\/h1>\n<\/div>\n<\/div>\n<div class=\"TwoColumnLayout_column TwoColumnLayout_right\"><\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"lower-container\">\n<div class=\"TwoColumnLayout_container inner TwoColumnLayout_fluid-left\">\n<div class=\"TwoColumnLayout_column TwoColumnLayout_left\">\n<div class=\"ArticleHeader_content-container\">\n<div class=\"BylineBar_first-container ArticleHeader_byline-bar\">\n<div class=\"BylineBar_border-wrap\">\n<div class=\"BylineBar_byline\"><a href=\"https:\/\/www.reuters.com\/journalists\/marc-frank\" target=\"_blank\" rel=\"noopener\">Marc Frank<\/a><\/div>\n<div class=\"BylineBar_last-container\">\n<p class=\"BylineBar_reading-time\">\n<div class=\"BylineBar_share-container\">\n<div class=\"SocialTool_container\">\n<ul>\n<li><\/li>\n<li><\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"TwoColumnLayout_column TwoColumnLayout_right\"><\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"TwoColumnLayout_container StandardArticle_content TwoColumnLayout_fluid-left\">\n<div class=\"TwoColumnLayout_column TwoColumnLayout_left\">\n<div class=\"StandardArticleBody_container\">\n<div class=\"StandardArticleBody_body\">\n<p>HAVANA (Reuters) &#8211; Communist-run Cuba\u2019s economic growth will come in at around 1 percent this year, compared with the 2 percent previously forecast, due to a fall in exports and tourism revenue, state-run media reported over the weekend.<\/p>\n<div class=\"PrimaryAsset_container\">\n<div class=\"Image_container\">\n<figure class=\"Image_zoom\">\n<div class=\"LazyImage_container LazyImage_dark\">\n<div class=\"LazyImage_image LazyImage_cover LazyImage_fallback\"><\/div>\n<\/div>\n<div class=\"Image_expand-button\"><\/div>\n<\/figure>\n<div class=\"Image_caption\">FILE PHOTO: A Cuban flag decorates a subsidised state store, or &#8220;bodega&#8221;, where Cubans can buy basic products with a ration book they receive annually from the government, in downtown Havana, Cuba November 22, 2017. REUTERS\/Alexandre Meneghini\/File photo\/File Photo<\/div>\n<\/div>\n<\/div>\n<p>The Caribbean island\u2019s gross domestic product grew 1.8 percent last year and 0.5 percent in 2016.<\/p>\n<p>Economy and Planning Minister Alejandro Gil Fernandez reportedly told a council of ministers meeting that the lowered GDP growth forecast for this year was due to \u201cless than expected revenues from activities such as tourism, the harvest (sugar) and mining (nickel),\u201d three key revenue sources for Cuba.<\/p>\n<div>\n<div class=\"DPSlot_container StandardArticleBody_dp-slot-inline StandardArticleBody_inline-canvas\">\n<p>SPONSORED<\/p>\n<div id=\"dpslot_canvas_6680290_USKCN1N90JO\" class=\"DPSlot_ad-container\">\n<div id=\"google_ads_iframe_\/4735792\/us.reuters\/world\/article_3__container__\">\n<div id=\"adtechAdContainer_19043805_734853727\">\n<div id=\"adtechAdContent_main_734853727\"><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p>Gil said austerity measures, which began in 2016, would continue into 2019. They include cuts in energy and fuel to state companies and reduced imports of consumer goods and inputs for the economy.<\/p>\n<p>Cuba\u2019s economy is notoriously inefficient and dependent on foreign revenues. The government also spends a large amount of its revenue on the country\u2019s free healthcare system, education and other services.<\/p>\n<p>The Trump administration is also tightening sanctions on Cuba that have been in place for more than a half a century and which were loosened a bit under former U.S. President Barack Obama.<\/p>\n<div>\n<div class=\"DPSlot_container StandardArticleBody_dp-slot-inline\">\n<div id=\"dpslot_native_429836_USKCN1N90JO\" class=\"DPSlot_ad-container\">\n<div id=\"google_ads_iframe_\/4735792\/us.reuters\/world\/article_5__container__\"><\/div>\n<\/div>\n<\/div>\n<\/div>\n<p>Some economists have estimated that Cuba\u2019s import dependence is as much as 17 cents for every dollar of product produced.<\/p>\n<p>Cuba\u2019s GDP fell 35 percent in the 1990s after the fall of the Soviet Union, which supported the country financially during the Cold War.<\/p>\n<p>The rise of Hugo Chavez and his Venezuelan socialist revolution led to a partial revival of the Cuban economy as Venezuelan oil was sold to Havana at favorable terms and Cuba sent doctors and other goods to its ally. But the trade relationship has deteriorated due to Venezuela\u2019s economic crisis and declining oil exports.<\/p>\n<p>Cuba\u2019s export revenues have declined every year since 2014, even as debt payments mounted, offset somewhat by increased revenues from telecommunications and remittances, though those earnings are treated as state secrets.<\/p>\n<div class=\"SmallVideo_small-video SmallVideo_left\">\n<div class=\"Video_container\">\n<div>\n<div>\n<div>\n<div>\n<div>\n<div>\n<div><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"SmallVideo_title-caption\"><span class=\"SmallVideo_title\">Markets surge after U.S. midterms<\/span><\/div>\n<\/div>\n<p>Combined exports and imports fell around 25 percent from 2013 through 2017, with imports dropping to $11.3 billion from $15.6 billion during that period, according to the government.<\/p>\n<p>In August, the government slapped a hold on already approved \u201cnon-essential\u201d imports.<\/p>\n<p>Pavel Vidal, a former Cuban central bank economist who currently teaches at the Universidad Javeriana Cali in Colombia, said the country was piling up budget deficits to keep the economy growing. Cuba\u2019s budget deficit reached 8 billion pesos last year, nearly 9 percent of its GDP, Vidal said.<\/p>\n<p>\u201cThis helps stimulate growth, but by accumulating a financial bubble in the form of public bonds in the hands of state banks,\u201d he said. \u201cIt can\u2019t go on forever.\u201d<\/p>\n<div class=\"Attribution_container\">\n<div class=\"Attribution_attribution\">\n<p class=\"Attribution_content\">Reporting by Marc Frank; Editing by Paul Simao<\/p>\n<\/div>\n<\/div>\n<div class=\"StandardArticleBody_trustBadgeContainer\"><span class=\"StandardArticleBody_trustBadgeTitle\">Our Standards:<\/span><span class=\"trustBadgeUrl\"><a href=\"http:\/\/thomsonreuters.com\/en\/about-us\/trust-principles.html\">The Thomson Reuters Trust Principles.<\/a><\/span><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>BUSINESS NEWS NOVEMBER 4, 2018 \/ 11:25 AM \/ 4 DAYS AGO Cuba lowers economic growth forecast as trade continues to drop Marc Frank HAVANA (Reuters) &#8211; Communist-run Cuba\u2019s economic growth will come in at around 1 percent this year, compared with the 2 percent previously forecast, due to a fall in exports and tourism revenue, state-run media reported over&#8230; <a href=\"https:\/\/baileyonlineclassroom.com\/theamericasblog\/2018\/11\/09\/cuba-lowers-economic-growth-forecast-as-trade-continues-to-drop\/\">Read more &raquo;<\/a><\/p>\n","protected":false},"author":115,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-2445","post","type-post","status-publish","format-standard","hentry","category-article"],"_links":{"self":[{"href":"https:\/\/baileyonlineclassroom.com\/theamericasblog\/wp-json\/wp\/v2\/posts\/2445","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/baileyonlineclassroom.com\/theamericasblog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/baileyonlineclassroom.com\/theamericasblog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/baileyonlineclassroom.com\/theamericasblog\/wp-json\/wp\/v2\/users\/115"}],"replies":[{"embeddable":true,"href":"https:\/\/baileyonlineclassroom.com\/theamericasblog\/wp-json\/wp\/v2\/comments?post=2445"}],"version-history":[{"count":1,"href":"https:\/\/baileyonlineclassroom.com\/theamericasblog\/wp-json\/wp\/v2\/posts\/2445\/revisions"}],"predecessor-version":[{"id":2446,"href":"https:\/\/baileyonlineclassroom.com\/theamericasblog\/wp-json\/wp\/v2\/posts\/2445\/revisions\/2446"}],"wp:attachment":[{"href":"https:\/\/baileyonlineclassroom.com\/theamericasblog\/wp-json\/wp\/v2\/media?parent=2445"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/baileyonlineclassroom.com\/theamericasblog\/wp-json\/wp\/v2\/categories?post=2445"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/baileyonlineclassroom.com\/theamericasblog\/wp-json\/wp\/v2\/tags?post=2445"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}