The Growing Economic Pressure On Cuba

Cuba remains strategically important because of both its close geographic proximity to the United States and its long-standing communist political system. The country is currently facing a severe economic crisis, worsened by fuel shortages after the U.S. moved to restrict Venezuelan oil shipments to the island. As access to gasoline and other essential goods declines, everyday life for ordinary Cubans has become increasingly difficult. Examining household income in Cuba highlights the scale of the problem. Many Cuban families live on less than $417 per month, while earning more than $2,500 monthly is enough to place someone among the country’s top 1% of earners. These figures underscore the extreme economic hardship facing much of the population and show how shortages of fuel, food, and basic goods can have devastating consequences for household finances.

This graph was produced by Lucas Juery, CFA, CFPⓇ and is not intended to provide financial advice.