Cuba is an exotic and unknown country of eternal summer. In addition, she is the last bastion of socialism, which takes the first steps in the transition to capitalism. The question arises – whether it will be interesting to investors? The journal “Exchange Leader” answers this question.
Cuba has many more problems. Postemics of Uzbekistan of the Forex Academy and Exchange Trade MasterForex-V identified the most important of them:
▪ monocultural, exported economy; ▪ deindustrialization of industry; ▪ great dependence on imported food; ▪ serious deficit in the trade balance; ▪ Acute lack of foreign currency; ▪ quite a large public debt; ▪ deficit for most goods; ▪ low standard of living; ▪ authoritarian political regime, which, due to Fidel Castro, began to weaken.
The main reasons for the difficult situation in Cuba steel, according to experts:
one. Trading embargo from the USA; 2. Soviet help stopped; 3. Very frequent natural disasters.;four. Financial crisis in the world; 5. Centralized housekeeping system; 6. Sufficient social security.
And now the state begins to say goodbye to socialism. What awaits Cuba in the future? Now in the country they are preparing for the most radical changes since the time of the revolution:
▪ The beginning of the process of privatization of unprofitable state -owned enterprises is given; ▪ Assignment of foreign trade control; ▪ Residential real estate trade is allowed; ▪ It is allowed to rural residents to cultivate land plots up to 40 hectares; ▪ Permission to business for 178 professions. But at the same time, private entrepreneurs were covered with huge taxes; ▪ It is planned to reduce civil servants; ▪ are prepared for the cancellation of the card system and increase the age of retirement; stick to foreign investors rental land for the time of 99 years; began to open joint ventures.
Cuba residents have features of mentality – these are “adult children”, they live one day, these are mostly funny and light people. That’s why the question is so relevant: will the investor have Cuba? MasterForex-V analysts noted that it is very difficult to analyze the prospects of Cuba. But with a high probability we can say that the country is expected by big changes. Although it is still very easy to do business on the island. What areas for investing in this country exist?
Agriculture is considered the most promising, the area of tourism has enormous opportunities, there is also a potential in the field of hydrocarbons, great prospects for nickel production, and also have large reserves of chromium, manganese, iron and copper ore. In addition, there is:
– highly educated and cheap labor resources;- advancedness in the field of biotechnology;- the uniqueness of the geographical position;- growth in the economy in the pre-crisis period.
In general, we can say that the “Island of Freedom” has a huge chance for a historical jerk, but the matter depends on the political will of the authorities. Many investors consider Cuba as a potential object for investment.