Cuba has announced tough economic measures for 2024, including raising prices for fuel and basic services and cutting subsidies.

In addition, the communist led administration has placed restrictions on the emerging private sector, thereby alarming ordinary Cubans. The changes, which are set to be implemented in 2024 represents some of the most significant modifications to the communist-run island’s economy in years.

As part of the measures, prices for water, electricity, liquid gas, transportation and fuel will rise in the coming year. Homes that consume the most electricity will experience 25 per cent increases, and the price of water will triple for some households. 

These changes, particularly for electricity could greatly affect those who operate small businesses from their homes. However, one of the noteworthy changes is moving away from subsidizing staples and products such as rice or sugar and instead providing subsidies for people in need.

Shortly after the 1959 revolution, Cuba rolled out the monthly ration book, known as the “libreta” (notebook), and provided all Cubans with heavily subsidized staples like eggs, rice, coffee and sugar.

Though the rationed food is not enough to last a month, for those who depend on a minimum monthly salary of about $17 US, the subsidies are a lifeline. 

Under the newly announced measures, only those deemed vulnerable would qualify for food subsidies. Ricardo Torres, a Cuban economist and fellow at American University in Washington DC, is contending that if they are implemented, the changes would represent a move away from the island’s centrally planned economy.