The Cuban state-controlled economy continued its downward spiral in the first five months of 2026.
The latest report, "Selected Indicators of the Enterprise and Budgeted System," released by the National Office of Statistics and Information (ONEI), reveals a simultaneous decline in sales, profits, production, efficiency, and employment, along with a significant increase in the number of companies operating at a loss.
The official statistics cover the period from January to May of this year, providing one of the most comprehensive snapshots of the state of the national enterprise system.
Significant Decline in Sales and Profits
One of the most striking figures is the plunge in net sales of goods and services, which fell from 650.311 billion pesos in the first five months of 2025 to 460.578 billion pesos over the same period in 2026.
This reduction amounts to 189.733 billion pesos, representing a 29.2% decrease.
Pre-tax profits followed a similar downward trend, dropping from 97.628 billion to 66.922 billion pesos between January and May. This decline of 30.705 billion pesos equates to a 31.5% reduction.
Production and Efficiency Take a Hit
The deterioration is not confined to financial results alone.
Production of goods and services decreased from 474.777 billion to 420.503 billion pesos, marking an 11.4% drop compared to the same period of the previous year.
Within the enterprise system, the decline was even more pronounced. Production fell from 397.837 billion to 342.087 billion pesos, nearly a 14% decline.
Efficiency also suffered a setback. The value-added ratio to production dropped from 50.2% to 45.9%, while in enterprises, it fell from 49.7% to 45%, indicating that the system is generating less wealth per peso produced.
Rise in Loss-Making Companies
The report identifies 399 business entities operating at a loss, up from 279 during the same period in 2025.
This increase of 120 companies represents a 43% rise. Specifically, the number of state companies experiencing losses grew from 252 to 363 over the year.
Havana accounts for the highest number of deficit-ridden companies, with 69, followed by Matanzas and Granma, each with 33.
Villa Clara and Camagüey report 32 companies with losses; Holguín and Santiago de Cuba have 26 each, while the Isle of Youth reports the fewest, with three.
Many Companies Barely Break Even
Although the ONEI reports 1,770 entities with profits, the data shows a highly uneven profitability landscape.
More than half of these companies, 944, posted profits of less than five million pesos during the analyzed period.
In stark contrast, only one company exceeded five billion pesos in profits, and it does not belong to the state sector.
Additionally, 603 entities, accounting for 21.7% of the total, are listed without classification, leaving their economic outcomes officially unknown.
Employment Figures Decline
The report also highlights a reduction in employment.
The enterprise and budgeted system workforce shrank from 2,280,610 workers in May 2025 to 2,138,454 in the same month this year, a reduction of 142,156 workers.
In the business sector, staffing decreased from 1,202,814 to 1,107,707 employees, a reduction of nearly 95,000 people.
While the average monthly salary in enterprises rose to 8,125 pesos, productivity showed a contrary trend during the period.
Context of Economic Restructuring
The release of this report coincides with the government's recent announcement of a broad transformation process for the state enterprise system, which includes the potential liquidation of persistently loss-making companies, merging deficit entities, and allowing private capital participation in certain business ventures.
Though the ONEI report merely presents the statistical data, the deterioration evident in its primary metrics aligns with the authorities' acknowledgment of the need to reform the functioning of state enterprises.
Beyond the increase in loss-incurring entities, the report demonstrates a negative trend in virtually all major indicators of the enterprise system: declining sales, reduced profits, falling production, decreased efficiency, and a significant reduction in employment.
Together, these figures paint a picture of the challenging economic landscape facing the Cuban state sector in 2026.
Understanding the Economic Challenges in Cuba
What are the main factors contributing to the decline in Cuba's state economy?
The decline is attributed to a combination of factors, including decreased sales, reduced production efficiency, and a rise in loss-making companies within the state-controlled economy.
How is the Cuban government responding to the economic crisis?
The government has announced plans for significant restructuring, including closing unprofitable companies, merging deficit entities, and inviting private capital into certain sectors.
Which areas in Cuba are most affected by company losses?
Havana is the most affected area, followed by Matanzas and Granma. These regions have the highest number of deficit-ridden companies.