CA, US & World
Cuba’s Crisis Deepens: Blackouts, Garbage Piles, and Food Shortages Under ‘War Economy’
Cuba is facing one of its harshest economic downturns in decades, with residents enduring daily blackouts lasting up to 20 hours, mounting piles of uncollected garbage, and severe shortages of food and basic goods. The government has described the situation as a “war economy,” acknowledging the widespread discontent.
The economy contracted by 1.1% in 2024 and is projected to shrink by another 1.5% this year, according to the United Nations Economic Commission for Latin America and the Caribbean (ECLAC). Inflation, while easing, remains in double digits.
Residents in Havana report that streets are often blocked by uncollected waste, while the national energy deficit regularly leaves more than 40% of the country without power. “We are in a recession, a quite complicated situation,” said economist Everleny Pérez Villanueva, noting the lack of functioning traffic lights and growing danger on city roads.
Water shortages compound the crisis. Authorities estimate that one million people face daily supply issues, often due to power cuts preventing pumping. Protests erupted this week in Havana as residents demanded access to clean drinking water.
Tourism, once a pillar of the Cuban economy, has faltered sharply. Hotel occupancy dropped to 24% earlier this year, and tourist arrivals remain well below pre-pandemic levels. The sugar industry—once a global symbol of Cuban production—has also collapsed, with the latest harvest recording the lowest output in more than a century.
Economists describe the situation as stagflation: high inflation alongside economic contraction and supply shortages. Imports of food and fuel have become essential, but reduced oil shipments from Venezuela and limited foreign investment have further strained the island.
While Cuban leaders often blame the U.S. embargo and sanctions, some officials, including President Miguel Díaz-Canel, have admitted that internal mismanagement is also to blame. Díaz-Canel has called prolonged blackouts the nation’s biggest obstacle, paralyzing much of the economy.
Critics argue that without abandoning the centralized model of governance, Cuba will remain stuck in crisis. “The economy cannot move forward until it abandons the centralized administration model, which is closely tied to the political system,” said economist Mauricio De Miranda Parrondo.
As hardship deepens, many Cubans are choosing to leave. Official figures show the country’s population has declined for four consecutive years, now falling below 10 million.
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By: CNN Newsource
August 23, 2025
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