Coronavirus: between the pandemic, the fall in tourism and sanctions, Cuba struggles

Havana, April 2020: it is difficult to respect the rules of social distancing imposed by the coronavirus pandemic when shortages require queuing. REUTERS / Alexandre Meneghini

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In Cuba, the coronavirus epidemic is severely affecting the country's economy, already in great difficulty. On the island, the peak of the epidemic seems past. Covid 19 has claimed 69 lives so far and infections are slowing down. But if the situation improves on the epidemiological level, it worsens on the economic level.

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Tuesday, May 5, the country of 11.2 million inhabitants had 69 deaths for 1,685 cases of contamination and only 17 cases detected during the previous 24 hours. With 954 recoveries and two foreign patients evacuated, Cuba has only 660 active cases.

But beyond the epidemic, Cuba must face food but also energy shortages, reports our correspondent in Havana, Domitille Piron . The tens of meters in front of the stores prove it. It takes on average more than 6 hours to buy a chicken, one hour for 2 liters of oil.

Cubans are used to waiting and rationing, but the situation seems to reach levels never seen before, even in the 90s after the Soviets left. We hadn't experienced that,  " say some. There is a shortage of rice, eggs, hygiene products and even water, because rain is scarce on the island.

Energy shortage

The lack of fuel also raises fears of electrical failures.
The government and state media are constantly reminding people to save energy. Because consumption has exploded in recent weeks, due to the containment decided to control the spread of the coronavirus, and an unexpected heat wave.

In Havana, energy consumption in homes has increased from 50 to 80% and this increased energy demand worries the authorities, which have also decided to temporarily suspend the collection of water, electricity and gas bills, to avoid other queues in the administrations.

Supply difficulties with multiple explanations

First, Cuba has been experiencing a liquidity crisis for a long time due to its state economic system and the difficulties experienced by its main ally, Venezuela. And one of the main drivers of the economy, tourism (3.300 million dollars in revenue in 2018), has been completely stopped for a month. This failure also badly affected the private sector (some 13.8% of the workforce), which received no aid from the State.

And to further darken this picture, the United States is not releasing the pressure by prohibiting Western Union from sending money from all countries except the United States, or even through criminal proceedings by companies that do business with Cuba. For example, medical equipment offered by China and artificial respirators from Switzerland have been blocked recently.

Faced with this situation, the government therefore announced at the beginning of the week a new economic plan. This new economic planning places agricultural production at the top of all priorities. In an island which imports 80% of its food (2,000 million dollars) and which finds itself in great difficulty, this seems to become an emergency. The administration also insists on widespread embezzlement, fraud and theft against the state, which will be scrutinized and severely punished. Television recently aired whistleblower reports.

Also listen : In Cuba, urban agriculture in times of coronavirus

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  • Cuba
  • Coronavirus
  • United States
  • Tourism

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