Cuban economy grew 1.4 percent in 2009

Havana, Dec 22 : The Cuban economy grew by only 1.4 percent in 2009, far from an initial forecast of 6 percent, the economy and planning minister told parliament.

Marino Murillo told lawmakers that Cuba's exports fell by 22.9 percent this year, while imports were down 37.4 percent.

The minister added that in 2009, workers' productivity declined by 1.1 percent, wages rose 2.9 percent and investments dropped by 16 percent.

Murillo attributed the scant growth this year to the 47-year-old US economic embargo, the effects of the international financial crisis and the three hurricanes that caused losses of USD 10 billion in 2008.

In the presence of President Raul Castro, the minister also outlined the priorities of the Government Social and Economic Plan for the coming year.

The chair of the retired Fidel Castro at the presidential table was left vacant, as it has been in all previous years since the Cuban leader stepped down in favour of younger brother Raul after being stricken with a severe illness in July 2006.

Murillo said that for 2010 the government will continue to strive for a balanced budget, to give priority to the areas of production that earn foreign currency, and will make only those investments that contribute to that end.

In his speech, President Castro warned that 2010 will be an even more "difficult" year in which he is not willing to run risks of "improvisation and haste" in introducing changes.

"I'm aware of the expectations and honest concerns expressed by lawmakers and citizens with regard to the speed and depth of the changes that we have to make in the functioning of the economy, in order to strengthen our socialist society," he said.

Nonetheless, he said that "we're progressing with a comprehensive focus" toward the "modernisation of the Cuban economic model", but "there's no room for the risks of improvisation and haste".

He added that his government will focus mainly on food production and jobs in 2010.

--IANS