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Cuban Leader Acknowledges Economic Struggles: GDP Drops 4% Amid Rising Inflation

Monday, December 15, 2025 by James Rodriguez

In a rare admission of the dire state of Cuba's economy, Miguel Díaz-Canel, the country's leader, acknowledged a 4% decline in the Gross Domestic Product (GDP) by the end of the third quarter.

“As the third quarter comes to a close, the GDP has decreased by over 4%, inflation is soaring, the economy is partially stalled, thermal power generation is in a critical state, prices remain high, and we are failing to deliver on the distribution of rationed food, with agricultural and food industry production falling short of the population's needs,” Díaz-Canel stated during the closing speech of the XI Plenum of the Communist Party of Cuba's Central Committee on Saturday.

Blaming external forces for the economic hardships, a common narrative of his regime, he pointed fingers at the U.S. embargo and the Cuban-American exile community. He added that the devastation caused by Hurricane Melissa further exacerbated the situation.

Despite the grim reality, Díaz-Canel painted an optimistic picture, suggesting that there is “popular participation” and support for his government, emphasizing the supposed prestige of the “leaders and cadres to address the main issues facing the population.”

“There is poverty in Cuba, as stated daily by the media established by those who applaud the blockade and suffocating measures. Yes, there is a vast material shortage in Cuba, caused by the genocidal policies that generously reward those who celebrate this poverty. We cannot be satisfied with this, and we will work tirelessly for the prosperity this nation deserves,” he proclaimed.

In his speech, he highlighted yet another initiative to “correct distortions and revitalize the economy,” claiming it is not just rhetoric but a tangible fight for everyday stability, ensuring sufficient salaries, food availability, elimination of power outages, revival of transportation, and functioning schools, hospitals, and essential services at the quality they deserve.

“We have debated with harshness, without triumphalism, and we have defended an economic agenda targeting the root of the problems, committing each organization, territory, and cadre,” he asserted, despite the disastrous economic policies of his administration in recent years.

Empty Rhetoric Amid Crisis

As Cuba faces an unprecedented national crisis—marked by power outages, rampant inflation, repression, chronic shortages, and a mass exodus emptying the country—the leadership reiterates the outdated script of the so-called “revolution”: resist, blame the enemy, defend unity, and promise corrections that never materialize.

While Cubans struggle to endure an increasingly precarious reality, their leaders cling to rhetoric that no longer reflects the country's state but rather obscures it. PCC plenums have turned into ceremonies of ideological reaffirmation rather than venues for actual policy-making. Each gathering reaffirms the same: the regime's leadership is unable to face reality and facts, hiding behind vacuous rhetoric and deceitful promises of a “battle of ideas,” where only the “heirs” and architects of “continuity” have a voice.

In his dual role as the head of state and first secretary of the PCC, Díaz-Canel reiterated that “unity is the guarantee that Cuba will remain free, independent, and sovereign,” as reported by the Presidency's website.

Understanding Cuba's Economic Challenges

What caused the 4% GDP decline in Cuba?

The 4% GDP decline was attributed to a combination of factors, including soaring inflation, partial economic paralysis, and critical issues in thermal power generation. Additionally, external pressures such as the U.S. embargo and the impact of Hurricane Melissa played significant roles.

How is the Cuban government addressing the economic crisis?

The Cuban government claims to be implementing projects to correct economic distortions and stabilize everyday life. These efforts include ensuring wages are sufficient, food is available, and essential services function effectively, although the effectiveness and impact of these measures are subjects of criticism.

What external factors does Díaz-Canel blame for Cuba's economic issues?

Díaz-Canel primarily blames the U.S. embargo and the Cuban-American exile community for the country's economic struggles, a common narrative within the regime. The devastation caused by Hurricane Melissa was also cited as a contributing factor.

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