Elías Amor Highlights Financial Struggles of Cuban State Enterprises

Between January and July 2026, a staggering 348 out of 2,206 Cuban state enterprises reported financial losses, illustrating that one in five of these government-run entities is operating in the red. This alarming statistic was brought to light by economist Elías Amor during his weekly program with journalist Tania Costa on CiberCuba.

These figures emerged amidst a meeting held by Prime Minister Manuel Marrero with leaders of business groups and government boards at the conclusion of a three-day workshop hosted by the National Institute of State-Owned Assets. Marrero used this opportunity to extol the socialist state enterprise as the "main subject of the national economy" and to advocate for the progress of the 176 Economic and Social Transformations.

Amor countered this narrative with hard data. "Last year, there were 256 state enterprises in the red, and this year there are 348, which amounts to nearly 20%," he pointed out, emphasizing that in just one year, an additional 92 companies joined the ranks of the deficit-ridden.

Plummeting Profits and Structural Issues

The problem extends beyond the growing number of entities in financial trouble. Overall profits in the state sector have nosedived by 69% compared to the previous year, dropping from 92,217 million pesos to 67,274 million pesos. "The activity of state enterprises is collapsing. We know state enterprises aren't profit-driven, but losing this much is unacceptable," Amor stressed.

Amor also highlighted a puzzling contradiction: if the country is stalled due to a fuel shortage, how are over 1,600 remaining companies managing to stay profitable? His answer points to a structural distortion: "Many of them operate under a monopoly regime, being the sole provider of a service or product in their specific area."

Bureaucratic Hurdles and Economic Realities

In addition to market rigidity, internal obstacles also play a significant role. During Marrero's meeting, business executives criticized the necessity to wait for orders from superiors before making any decisions. Amor identified this as a systemic impediment. "If the top doesn't give the order, the state enterprise director won't act, wasting valuable time needed for the business to operate properly."

The 2019 Cuban Constitution enshrines the socialist state enterprise as "the foundation of the national economy," a principle Marrero reiterated in his address. For Amor, the data transforms this foundation into a precarious fiction. "I believe having such a fragile base suggests they aren't entirely confident."

Statistics from the National Office of Statistics and Information (ONEI) support this assessment. Between January and May, nearly 400 state enterprises recorded losses, net sales fell by 29.2%, and pre-tax profits shrank by 31.5%. Havana led the territorial list with 69 entities in the red.

Private Sector Thrives Amidst State Struggles

In stark contrast, microenterprises — the private sector — expanded by 35% in 2025 and stand as the only economic category that hasn't regressed, according to ONEI data featured in the program.

Amor concluded that Marrero's meeting with the state enterprises failed to meet the moment's demands. "Marrero's presence at this meeting was lackluster, filled with economic-political marketing messages lacking depth," though he acknowledges that the prime minister continues to solidify his role as a figurehead for reformist factions within the regime.