Cuba's Private Sector Surpasses State in Retail Sales: A New Economic Milestone

Cuba's private sector dominated retail sales in 2024 for the first time, reaching 55% of total sales. This growth reflects entrepreneurs' resilience amidst an ongoing economic crisis. Higher prices in the private sector contrast with state-run services as imports by private businesses surge despite overall national import declines.

In a landmark development, Cuba's private sector accounted for the majority of retail sales for the first time last year, according to new data from the National Statistics Office.

The figures show that the 'non-state' sector was responsible for 55% of retail sales in 2024, marking a significant rise from 44% in 2023. This shift comes as Cuba faces a severe economic crisis, with the state-controlled economy contracting by 11% over the past five years.

Bustling informal markets, such as the 100th Street Bridge Fair in Havana, illustrate this trend, with vendors offering items often unavailable in state stores. As the government continues to expand private enterprise, private businesses have reported a surge in imports, totaling over $1 billion, despite overall import declines for the nation.

(With inputs from agencies.)