Cuba’s Macroeconomic Stabilisation Plan

The ruling Communist Party says the measures are part of an adjustment program needed to get the island’s economy back on the path of growth. The plan seeks to reduce government spending by raising prices capped by the state and reducing the cost to public coffers of subsidies, moving from a model that subsidises products to one that economically supports vulnerable groups. Cuba has announced a sharp rise in fuel, water and electricity prices.

• Petrol – 550%

• Electricity – 25%

• Gas – 25%

• Water – 300%

The clip from Al Jazeera looks at the impact on local citizens of Cuba. Interesting that it was more economical for one household to keep the gas stove constantly on as it saves on the cost of buying a lighter. The gas bill is just $0.15 cents a month although the average salary is just $17 a month.

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