Has Cuba’s Economy Collapsed? | FT #shorts
Why It Matters
The crisis exposes the limits of Cuba’s economic model and raises geopolitical stakes for U.S. policy in the region: further destabilization could force Cuba to seek new patrons or prompt changes with significant implications for regional trade, migration and U.S.-Latin America relations.
Summary
Cuba is experiencing acute economic distress marked by halted flights, cancelled surgeries, workplace closures and mounting rubbish, driven by both intensified U.S. pressure and long-standing domestic mismanagement. The Trump administration tightened the decades-old embargo, pursued sanctions against key actors including a military-run conglomerate, and curtailed oil supplies after pressuring Venezuela and other suppliers. Those measures, combined with Cuba’s failure to implement market-strengthening reforms since the Soviet collapse, have left the island heavily dependent on foreign patrons and vulnerable to sudden shocks. Havana says talks on reform are underway but insists its political system is not negotiable, even as the country faces a choice over realignment or deeper crisis.
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