Argentina and Cuba face significant economic and fiscal challenges

In Argentina, provincial economies face significant fiscal pressure. A report from CEPA indicates that declining national transfers and local resources are intensifying labor conflicts in the public sector. Tierra del Fuego has experienced the most severe impact, with real income dropping 34% since 2023, leading to both primary and financial deficits. Meanwhile, Entre Ríos has emerged as a leader in low family debt, with levels at only 7.9% of its PBG. Nationally, provinces show a heavy reliance on the 'Ingresos Brutos' tax, which accounts for an average of 76.2% of local revenue.

In Cuba, President Miguel Díaz-Canel defended recent economic reforms, stating that 176 new measures aim to strengthen the national economy through increased private sector participation and foreign investment. He rejected claims that these changes are concessions to the United States, asserting they are part of a long-term internal process. Despite these efforts, the country faces severe shortages, including a critical lack of medicines and rising infant mortality. Additionally, the Cuban government recently approved the 2025 State Budget liquidation, reporting a reduced fiscal deficit despite international tensions and economic blockades.