published: Wednesday | January 2, 2008
Cuba said last Friday its economy grew 7.5 per cent in 2007, the fourth
year the Communist-run country has reported a big increase in the gross
domestic product since being plunged into crisis by the Soviet Union's
demise.
Economy and Planning Minister José Luis Rodriguez told a year-end
session of parliament a 10 per cent target was not reached due to the
heaviest rains since the early 1960s, import delays and other factors.
Rodriguez said Cuba's GDP would increase 8 per cent in 2008.
"The results are significant and above the 5.4 per cent norm for the
region ... and at the same time demonstrate the gradual consolidation of
the economy," Rodriguez said.
Rodriguez reported a 24.7 per cent rebound in the agricultural sector,
7.8 per cent in industrial activity, 7.9 per cent in transportation and
11.7 per cent in services.
Growth was reported as 12.5 per cent in 2006, 11.8 per cent in 2005 and
5 per cent in 2004, based on a unique Cuban formula that outside experts
such as the Economist Intelligence Unit and the CIA say may overstate
the GDP by three to four percentage points.
Cuba's GDP plunged 35 per cent in the early 1990s and industrial
activity 80 per cent with the demise of former benefactor the Soviet
Union, leaving the country in darkness, crippling public transportation
and causing food and other shortages.
A gradual recovery has gained force since 2004 as oil-rich ally
Venezuela began payments for massive social service assistance and soft
credits from China resulted in billions of dollars in new revenues to
restore infrastructure and improve Cubans' often difficult daily lives.
IMPROVED TRADE BALANCE
Rodriguez said exports increased 24 per cent and imports just 2 per cent
this year, a marked turnaround from recent years when imports soared to
twice the 2004 level and exports stagnated.
Foreign trade totaled US$12.18 billion in 2006, with exports of US$2.76
billion and imports of $9.42 billion, the government reported.
The trade deficit was offset by more than US$6 billion in revenues from
services in 2006, with similar revenues expected for 2007 Rodriguez did
not mention a figure.
"We have a commercial balance of goods which is better than previous
years," Foreign Trade Minister Raul de la Nuez recently told Reuters.
"Nickel prices are the most important reason our exports are up,
followed by pharmaceuticals and medical equipment and tobacco," de la
Nuez said.
"We have been importing a great deal of equipment and products that did
not have to be repeated this year and we are pursuing a policy of
substituting imports," de la Nuez said when asked about the slowdown in
imports.
- Reuters
http://www.jamaica-gleaner.com/gleaner/20080102/business/business10.html
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