Key facts
- Cuban President Miguel Díaz-Canel announced significant economic reforms.
- The reforms aim to liberalize the economy, particularly in tourism, foreign trade, and the private sector.
- Measures include reopening tourism to new players, agricultural sector access to foreign exchange, and lifting vehicle import restrictions.
- The changes are presented as responses to the 'demands of the present time' amid a 'hostile environment' of US sanctions.
- The reform package includes streamlining the state apparatus and phasing out universal subsidies.
Cuban President Miguel Díaz-Canel announced a wide-ranging package of economic reforms on Friday, aimed at liberalizing the island's economy amidst continued US sanctions and embargos.
The reforms will impact key sectors including tourism, foreign trade, investment, and the private sector. Arguably the most significant measure is the reopening of the tourism sector to "new players" and "new modalities," utilizing state-owned hotel stock after foreign companies withdrew to avoid US sanctions. Tourism, a major economic driver for Cuba, has been in deep crisis since the COVID-19 pandemic, exacerbated by ongoing US economic pressure.