Cuba

Cuba’s political structure remains deeply influenced by the 1959 revolution, maintaining the one-party Communist system to this day. Leadership transitioned from Fidel to Raúl Castro in 2006, and then to Miguel Díaz-Canel in 2018. This Caribbean island of about 11 million people could have immense economic potential, particularly in sectors such as tourism, mining and agriculture. Additionally, it boasts a skilled and inexpensive labor force, superior healthcare and educational sectors, and low crime and corruption levels. A cooperation agreement with the European Union further enhances trade opportunities and job creation prospects for the local economy.

Still, Cuba remains plagued by several vulnerabilities. A monetary reform in January 2021 failed to unify the dual currency system and revise prices, leading to hyperinflation, eroding savings and devaluing salaries, and causing shortages of essential supplies. The Covid-19 pandemic and U.S. sanctions have exacerbated the economic downturn. Other weaknesses include low work productivity and a large informal sector, an insufficient degree of investment in infrastructure and in the modernization of the economy, and inefficient administrative processes. As a result of its political isolation, Cuba is also strengthening its ties with non-Western nations such as China and Russia.