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GlobalizationCuba

Cuba's crisis hits hard at home

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August 13, 2026

Regular power outages, expensive food and fewer tourists are squeezing Cuban families and businesses as the economy deteriorates.

Cuba is facing one of its worst economic crises in decades. Soaring prices, chronic shortages and frequent power outages are affecting daily life across the island. As inflation erodes purchasing power, many pensioners and low-income families are struggling to afford basic necessities, while businesses dependent on tourism see demand collapse.
 
The crisis is driven by a combination of economic challenges, including US sanctions, a shortage of foreign currency and weak tourism revenues. At the same time, shortages of medicine and essential goods are placing additional pressure on communities, prompting aid organizations and volunteers to step in where they can. From Havana's neighborhoods to local businesses, Cubans are searching for ways to cope with a rapidly changing economic reality

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