Cuba faces severe economic crisis and extreme poverty

Cuba is facing a profound economic and social crisis characterized by the collapse of state-owned enterprises and extreme poverty. Many state companies operate under a “soft budget constraint,” where annual losses are absorbed by the state budget rather than being resolved through management changes. Following the 2021 restructuring, over a quarter of state enterprises reported significant losses, with the Ministry of Finance and Prices allocating 18 billion to cover such deficits.

A report from the Cuban Observatory of Human Rights (OCDH) highlights a severe deterioration in living conditions. The study indicates that 94% of the population lives in extreme poverty, and 95% disapprove of the government's management. Approximately 68% of households report monthly incomes below 20,000 Cuban pesos (roughly 30 USD), leaving only 6% of families with enough financial capacity to purchase non-essential goods. This economic asphyxiation has led to critical food insecurity, with eight out of ten Cubans reporting missing at least one meal per day.