Cuba, Argentina, Egypt: economic crises and challenges
For three years, Cuba has been mired in a severe economic and supply crisis, including massive inflation, shortages of fuel, medicines, electricity and an unprecedented wave of emigration. The Cuban government intends to introduce a macroeconomic adjustment plan that includes higher energy prices (electricity, gas, fuel and water) and reductions in subsidies for primary food products. Until now, rice, beans, cooking oil, poultry and other goods were sold at subsidised prices. Moreover, the Cuban economy is heavily dependent on tourism, yet in 2023, fewer than 2.5 million travellers arrived there.
Argentine President Javier Milei withdrew the decision to join the BRICS organisation. Argentina was to be accepted to BRICS alongside Egypt, Iran, Ethiopia, Saudi Arabia and the United Arab Emirates. Argentines are struggling with skyrocketing inflation, with prices rising by approximately 150% over the past year, low cash reserves and high public debt. 40% of the country’s population lives below the poverty line.
At the end of last year, Abd al-Fattah al-Sisi won the presidential elections in Egypt, securing his third term in power. The challenge he will face will be to repair the state’s economy – public debt, prices of subsidised goods, poverty and unemployment are currently rising. There has also been a sharp decline in the value of the Egyptian pound against the US dollar and capital outflow. In 2024 alone, Egypt is obliged to repay foreign debt in the amount of $29.2 billion.