page_title: Cuba
section_title: Economy
hierarchical_section_title: Cuba / Economy
caption_attribution_description: English: Export Trading Treemap. From MIT/Harvard Atlas of Economic Complexity
context_page_description: Cuba, officially the Republic of Cuba, is a country comprising the island of Cuba as well as Isla de la Juventud and several minor archipelagos. Cuba is located in the northern Caribbean where the Caribbean Sea, Gulf of Mexico and Atlantic Ocean meet. It is east of the Yucatán Peninsula, south of both the U.S. state of Florida and the Bahamas, west of Haiti and north of both Jamaica and the Cayman Islands. Havana is the largest city and capital; other major cities include Santiago de Cuba and Camagüey. The area of the Republic of Cuba is 110,860 square kilometers. The island of Cuba is the largest island in Cuba and in the Caribbean, with an area of 105,006 square kilometers, and the second-most populous after Hispaniola, with over 11 million inhabitants.
  The territory that is now Cuba was inhabited by the Ciboney Taíno people from the 4th millennium BC until Spanish colonization in the 15th century. From the 15th century, it was a colony of Spain until the Spanish–American War of 1898, when Cuba was occupied by the United States and gained nominal independence as a de facto United States protectorate in 1902.
context_section_description: The Cuban state claims to adhere to socialist principles in organizing its largely state-controlled planned economy. Most of the means of production are owned and run by the government and most of the labor force is employed by the state. Recent years have seen a trend toward more private sector employment. By 2006, public sector employment was 78% and private sector 22%, compared to 91.8% to 8.2% in 1981. Government spending is 78.1% of GDP. Any firm that hires a Cuban must pay the Cuban government, which in turn pays the employee in Cuban pesos. The average monthly wage as of July 2013 is 466 Cuban pesos—about US$19.
  Cuba has a dual currency system, whereby most wages and prices are set in Cuban pesos (CUP), while the tourist economy operates with Convertible pesos (CUC), set at par with the US dollar. Every Cuban household has a ration book (known as libreta) entitling it to a monthly supply of food and other staples, which are provided at nominal cost.
  Before Fidel Castro's 1959 revolution, Cuba was one of the most advanced and successful countries in Latin America. Cuba's capital, Havana, was a "glittering and dynamic city". The country's economy in the early part of the century, fuelled by the sale of sugar to the United States, had grown wealthy. Cuba ranked 5th in the hemisphere in per capita income, 3rd in life expectancy, 2nd in per capita ownership of automobiles and telephones, and 1st in the number of television sets per inhabitant. Cuba's literacy rate, 76%, was the fourth highest in Latin America. Cuba also ranked 11th in the world in the number of doctors per capita. Several private clinics and hospitals provided services for the poor. Cuba's income distribution compared favorably with that of other Latin American societies. However, income inequality was profound between city and countryside, especially between whites and blacks. Cubans lived in abysmal poverty in the countryside. According to PBS, a thriving middle class held the promise of prosperity and social mobility. According to Cuba historian Louis Perez of the University of North Carolina at Chapel Hill, "Havana was then what Las Vegas has become." In 2016, the Miami Herald wrote, "... about 27 percent of Cubans earn under $50 per month; 34 percent earn the equivalent of $50 to $100 per month; and 20 percent earn $101 to $200. Twelve percent reported earning $201 to $500 a month; and almost 4 percent said their monthly earnings topped $500, including 1.5 percent who said they earned more than $1,000."
  After the Cuban revolution and before the collapse of the Soviet Union, Cuba depended on Moscow for substantial aid and sheltered markets for its exports. The loss of these subsidies sent the Cuban economy into a rapid depression known in Cuba as the Special Period. Cuba took limited free market-oriented measures to alleviate severe shortages of food, consumer goods, and services. These steps included allowing some self-employment in certain retail and light manufacturing sectors, the legalization of the use of the US dollar in business, and the encouragement of tourism. Cuba has developed a unique urban farm system called organopónicos to compensate for the end of food imports from the Soviet Union. The U.S. embargo against Cuba was instituted in response to nationalization of U.S.-citizen-held property and was maintained at the premise of perceived human rights violations. It is widely viewed that the embargo hurt the Cuban economy. In 2009, the Cuban Government estimated this loss at $685 million annually.
  Cuba's leadership has called for reforms in the country's agricultural system. In 2008, Raúl Castro began enacting agrarian reforms to boost food production, as at that time 80% of food was imported. The reforms aim to expand land use and increase efficiency. Venezuela supplies Cuba with an estimated 110,000 barrels (17,000 m³) of oil per day in exchange for money and the services of some 44,000 Cubans, most of them medical personnel, in Venezuela.
   
  In 2005, Cuba had exports of US$2.4 billion, ranking 114 of 226 world countries, and imports o
caption: Cuban export composition, 2009
exif: {}