Gross National Product (GNP): $18bn

Exchange rates against the US$ over the last year: 21 Cuban pesos (21)

SCORE CARD

World GNP ranking: 69th GNP per capita: $1600 Balance of payments: In deficit Inflation: 7.1% Unemployment: 6%

Strengths

Tourism remains major growth sector, though ambitious targets are not being met. Nickel and cigars. Strengthening banking sector.

Weaknesses

Denied major market and investment capital by US trade embargo. Acute shortage of hard currency. Vulnerability of nickel to world price fluctuations. Collapse of sugar industry. Difficult terms of trade and weak legal framework deter investment. Infrastructure is deficient. Shortages of fuel, fertilizers, spare parts, and other inputs. Severe hurricane damage in 2001.

Profile

The collapse of the USSR meant the loss of some $5 billion in annual aid and led to a deep recession. A cautious adoption of some capitalist-style reforms in the mid-1990s, including the free use of the US dollar, stimulated the growth of a dollarized sector centered on tourism, which has attracted strong foreign investment. Tourism now dominates the economy, and benefits some 160,000 self-employed and small businesses. However, the once important sugar industry has collapsed, with the loss of around 100,000 jobs in recent years. Foreign companies are involved in joint ventures in banking and the oil and gas sectors. There is a very large informal sector. The government lost a significant source of revenue in 2001, when Russia terminated the lease of its information-gathering center.

EXPORTS

IMPORTS

ECONOMIC PERFORMANCE INDICATOR

From "The Financial Times World Desk Reference" © Dorling Kindersley 2004