Miguel Díaz-Canel, in his closing address at the Extraordinary Plenary Session of the Central Committee of the Communist Party of Cuba, conceded that merely enduring the crisis is no longer viable. "While resistance has preserved our nation, today, resistance alone is insufficient. We must innovate, increase production, remove obstacles, listen more, make better decisions, and hold ourselves accountable," he stated.
This statement marks a notable rhetorical shift for a regime that has long promoted "creative resistance" as a core strategy against economic collapse.
As recently as March 2026, Díaz-Canel had advocated for cooking with charcoal and wood as an example of this resilience.
New Economic and Social Reforms Underway
The Plenary session, held on Wednesday at the Palace of the Revolution, endorsed over twenty economic and social reforms in a rapid institutional process: Díaz-Canel announced these changes on June 12, the PCC supported them on Wednesday, and the National Assembly was convened for an extraordinary session this Thursday via Agreement 599-X/2026.
In his address, the leader also acknowledged internal shortcomings: "Some obstacles are not external or due to blockades. There is sluggishness, bureaucracy, rules that hinder those who wish to produce, and decisions that we have delayed. What is within our control, we must change, and we must change it now."
Addressing Internal Challenges
The emergency agenda is structured around five key areas: macroeconomic stabilization, transformation of the economic model, recovery of the agricultural sector, strengthening cost management, and mitigating the social impacts of these changes.
Among the specific measures are the removal of general price caps—which, according to Díaz-Canel, "led to product shortages, illegal market diversion, and higher prices"—the opening to private and foreign financial institutions, direct import and export authorization for both state and non-state enterprises, expansion of land grants, and the removal of tariffs on solar technologies.
The regime also announced a reduction in the number of ministries from 27 to between 20 and 21, along with opening investment opportunities for Cubans residing abroad. Díaz-Canel disclosed that the government studied the models of China and Vietnam and utilized artificial intelligence to assess the proposals.
Dire Economic Context
These declarations come amidst an unprecedented economic decline. The CEPAL forecasts a 6.5% drop in Cuba's GDP for 2026, with a cumulative contraction of 10.3% over 2025-2026 and a near 26% loss since 2020.
Power outages exceed 20 hours daily in some provinces, the sugar harvest fell below 150,000 tons—its lowest level in over a century—and the dollar was trading at 685 Cuban pesos in the informal market as of Thursday.
The PCC approved these transformations with the support of Raúl Castro, who participated via videoconference and signed the proposal document. His brief yet significant message was, "More important than the approval itself is the timely and proper implementation of these transformations."
Public reaction on social media was skeptical. Economist Pedro Monreal described the reforms as "belated pragmatism" and warned that Cuba "has missed the train" of reforms akin to those in China or Vietnam.
Even Díaz-Canel admitted in his speech that "the mistake was not in proposing them, but in delaying their implementation."
FAQs on Cuba's Economic Reforms
What are the key areas addressed in Cuba's new economic reforms?
The reforms focus on macroeconomic stabilization, transforming the economic model, recovering the agricultural sector, strengthening cost management, and mitigating social impacts.
How has the public reacted to these reforms?
The public reaction has been largely skeptical, with many viewing the reforms as overdue and expressing doubts about their effectiveness.
What economic challenges is Cuba currently facing?
Cuba is experiencing significant economic challenges, including a projected GDP decline, extensive power outages, and severe shortages in the sugar industry.