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Cuban Leadership Acknowledges 2026 Challenges: "We're Operating in a War Economy"

Saturday, January 24, 2026 by Oscar Guevara

During an extraordinary session of the Provincial Government Council in Ciego de Ávila, Prime Minister Manuel Marrero Cruz acknowledged that Cuba is essentially grappling with a "war economy." This stark assessment underscores the depth of the national crisis.

Marrero urged local governments to shed their passive roles and become active agents in fostering their own growth. Emphasizing the importance of communities, he described them as the "battlefield" where the public directly feels the impact of the crisis and where productive efforts need to be concentrated.

"Sustainability is best achieved through what each municipality can organically contribute with collective effort," he asserted.

The Prime Minister highlighted that Cuba's current economic woes—characterized by resource shortages, inflation, and declining domestic production—demand a radical shift in mindset and tangible actions rather than mere rhetoric.

The term "war economy" is not merely figurative. Marrero used it to depict a situation where the nation must endure with scant resources, implement emergency measures, and prioritize essential sectors like food supply and basic services.

Continuing the usual narrative, Marrero attributed the dire situation to the "U.S. blockade" and the "hostility of the U.S. Government." He also emphasized the need to address "internal distortions" and eliminate bureaucratic obstacles that hinder production.

The Prime Minister called on communist party members to bolster municipal autonomy and fully leverage local capabilities to tackle the crisis. Nevertheless, he did not provide them with the necessary tools or financial resources to accomplish these monumental tasks demanded by the PCC leadership.

Ciego de Ávila was highlighted as an area with significant agricultural potential, boasting about 35,000 hectares of diverse crops. However, the government admitted that the region is not fully exploiting its productive opportunities or available human resources.

Marrero insists that 2026 will be a pivotal year. "To move forward, we must do things differently and not fear change," he concluded.

Understanding Cuba's Economic Challenges

What does "war economy" mean in the context of Cuba?

In Cuba's context, "war economy" refers to surviving with minimal resources, implementing emergency measures, and focusing on essential sectors like food and basic services.

What are the main economic challenges Cuba faces?

Cuba is struggling with resource shortages, inflation, and declining domestic production, requiring a radical change in mindset and concrete actions.

How is Cuba planning to overcome these challenges?

The government aims to empower local municipalities to harness their inherent potential and focus on community-driven development, though resources remain limited.

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