Cuban Economy Posts Double-Digit Growth in First Half of 2005

Cuba’s economy grew 12.5 percent in the first half of 2006, boosted by a surge in the construction, transport and services industries, Economy and Planning Minister Jose Luis Rodriguez said.

This year the economy is likely to attain a second straight year of growth exceeding 10 percent as local investment and proceeds from exports such as nickel and sugar cane boost government coffers and workers’ incomes, Rodriguez said at a press conference in Havana.

“We are moving forward in our policies of favoring workers’ income, keeping unemployment at low levels and investing in our future ability to generate electricity at lower costs,” Mr. Rodriguez pointed out.

The island nation’s economy is benefiting from inflows of investment from countries such as France, Spain and Canada. It is too early to asses the effect of increased investment from Venezuela, which is helping the country to renew its oil refining and electricity generating capacity, Mr. Rodriguez said.

Cuba is considering expanding output of ethanol fuel in a joint venture with a Spanish company, as international prices for the fuel are “attractive,” he said.

Cuba plans one day to merge its local currency and its convertible currencies into one, as China did, Rodriguez said. He declined to give a timetable.

The Cuban government last year revalued both currencies by 7 percent against the dollar because of a surge in foreign investment inflows and proceeds from sales abroad of nickel, sugar and medical and educational services to countries such as Venezuela and Guatemala.