Cuba economy in recession for 2016: Castro

AFP, HAVANA: Venezuela’s economic crisis pushed Cuba into recession in 2016 for the first time in years, President Raul Castro said Tuesday.
Cuba’s economy contracted by 0.9 per cent, compared to the 4.4 per cent growth the government reported a year earlier, Castro told the National Assembly.
Venezuela, Cuba’s closest ally and economic supporter, is in the grip of a dire economic crisis spurred by low prices for oil—the country’s main export.
Venezuela cut Cuba’s oil supplies this year by 40 per cent.  “Limits on petroleum supplies and financial tensions worsened in the second half of the year, leading to a GDP contraction of 0.9 per cent,” Castro said.
It was the first time since 1995 that the Americas’ only one-party Communist government reported negative growth.
In the early 1990s, after the collapse of the former Soviet bloc, Cuba’s economy contracted on the order of 15 percent in one year.
Castro said that despite tough economic times, social services continued to remain free, and he forecast growth of about two per cent in 2017.

Cuba economy in recession for 2016: Castro

AFP, HAVANA: Venezuelas economic crisis pushed Cuba into recession in 2016 for the first time in years, President Raul Castro said Tuesday. Cubas economy contracted by 0.9 per cent, compared to the 4.4 per cent growth the government reported a year earlier, Castro told the National Assembly. Venezuela, Cubas closest ally and economic supporter, is in the grip of a dire economic crisis spurred by low prices for oilthe countrys main export. Venezuela cut Cubas oil supplies this year by 40per cent. Limits on petroleum supplies and financial tensions worsened in the second half of the year, leading to a GDP contraction of 0.9 per cent, Castro said. It was the first time since 1995 that the Americasonly one-party Communist government reported negative growth. In the early 1990s, after the collapse of the former Soviet bloc, Cubas economy contracted on the order of 15 percent in one year. Castro said that despite tough economic times,social services continued to remain free, and he forecast growth of about two per cent in 2017.