Cuban gross domestic product (GDP) decreased by 34,8% between 1989
and 1993. In 1994 the country managed to slow down
this process. After the said crisis, the economic recovery reached
its peak in 1996 with a growth of 7,8%. However, though the tendency
to grow continues, in 1997 the economy grew by just 2,5%, much less
The major component of the Cuban economy is sugar cane; the national
production of Sugar Cane has decreased due to lack of materials,
fertilizer and spare parts for the industry.
More recently, tourism is becoming the main source of hard currency
for the country. Between 1990 and 1997 an average annual increase
of 19,3% of overall visitors and 11,4% new visitors for tourists.
To this date, there are 65 joint venture firms operating at the
island in the tourism sector, with a capital above 2.5 billion
For the year 2001, with an availability of 37,000 rooms, over
2,2 million tourists are expected to arrive. Foreign investments
in different businesses have increased to more than 340 enterprises.
According to official figures, capital involved in these associations
rises to 2,5 billion dollars.
The more attractive businesses for foreign investors are: tourism,
nickel and other minerals, communications, construction, real
estate and exploitation
of oil fields. Last year production of crude oil was over 1 678
000 tons. Production arrangements have also been favoured by the
Free Zones opened at Wajay, Havana, Berroa and Mariel, where more
than 70% of the area is used for commercial activities.
Tobacco, another important product of international good standing,
yielded 150 000 quintals in 1998. Other important products with
improved profits are; coffee, rum, citrus fruits, cocoa and agriculture
as a whole. Pharmaceutical and biotechnological industries are
also developing. Best commercial partners for the island are;
Europe, Latin America, Canada, Russia and China. Over the year
2000 the losses incurred by the economic and commercial embargo
imposed by the United States exceeded 2 billion dollars.