Cuba's trade deficit jumps 65 percent in 2008

Cuba's trade deficit jumps 65 percent in 2008
Reuters
Reuters - Wednesday, July 1

*Cuba's imports increased 41 percent last year
*Venezuela top trading partner, U.S. ranks fifth

HAVANA, June 30 - Cuba's trade deficit soared by 65 percent in 2008,
driven by a doubling in the value of oil imports, higher costs of food
imports and a decline in key export nickel, according to a government
report released on Tuesday.

Exports totaled $4 billion, similar to 2007, while imports increased 41
percent to $15.4 billion, leaving a deficit of $11.4 billion, the
National Statistics Office reported on its web page www.one.cu.

Oil-rich Venezuela saw exports to its socialist ally soar to $5.3
billion from $2.9 billion in 2007 as it increased oil shipments and
prices peaked, making the South American country by far Cuba's most
important commercial partner.

Cuba's arch enemy, the United States, also benefited from higher prices
as food exports, allowed since 2000 under its long-standing trade
embargo, hit a record $860 million, compared with $608 million in 2007.

Despite trade sanctions in place since 1962, the U.S. held its ranking
as the island's fifth-largest trading partner.

China remained Cuba's second partner at over $2 billion, followed by
Spain and Canada as in recent years.

The trade data has to do with the trading of goods and does not include
key income sources such as tourism and the export of medical services,
primarily to Venezuela.

Earlier this year, the statistics office said Cuban exports of services
grew by 6.2 percent to more than $9 billion in 2008, consolidating their
position as Cuba's biggest source of foreign exchange.

Cuba said it received $2.4 billion from tourism and related activities
in 2008.

But nickel exports to Canada, Europe and China fell to $1.5 billion from
$2.2 billion in 2007.

Last year's poor economic performance, attributable in part to three
devastating hurricanes and the global financial crisis, has forced Cuba
to severely cut imports this year, postpone payments to creditors and
impose austerity measures such as forced reductions in power
consumption. (Reporting by Marc Frank, Esteban Israel and Rosa Tania
Valdes; Editing by Jeff Franks and Steve Orlofsky)

Cuba's trade deficit jumps 65 percent in 2008 - Yahoo! Malaysia News (1
July 2009)
http://malaysia.news.yahoo.com/rtrs/20090701/tbs-cuba-economy-trade-7318940.html