Has Cuba’s Economy Collapsed? | FT #shorts

Financial Times
Financial TimesMay 29, 2026

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.

Original Description

Cuba is facing one of its worst crises in decades. The communist island is grappling with severe shortages, while sanctions from Washington are squeezing key sources of revenue and oil supplies. John Reed discusses the reasons behind the country’s economic turmoil, and whether US pressure will force Havana to negotiate reforms.
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