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Cuba must face the new challenges of the economy by boosting domestic production and foreign investment

| Events | Cuban Desk

Event about New Government in Cuba in which he renowned Cuban economist Pavel Vidal and Jaime Olleros participate

Cuba is in a moment of change in which the new leaders must adopt decisions that have been postponed until now but that represent a new challenge to position the Cuban economy by promoting domestic production and foreign investment.

This was the opinion of Jaime Olleros, Managing Partner of Andersen Tax & Legal in Spain, during the New Government in Cuba, New Economic Perspectives? Day, organized by the firm and in which the renowned Cuban economist Pavel Vidal, PhD in Economics from the University of Havana, participated.

During his speech, Jaime Olleros argued that foreign investment in Cuba is one of the driving forces of the economy and that its legal framework is based on the law on foreign investment. At this point, he assured that it offers opportunities for companies from other countries, not only those exposed in the investment portfolio, but also for the needs of society itself.

"Economic change is taking place and involves monetary unification", said the managing partner of Andersen Tax & Legal in Spain, who pointed to the effect this change will have on wage costs, price and labour force. For Jaime Olleros, Cuba has an important challenge for the next few years and the businessmen must be "aware of the situation in the country when they start their business but also be patient and have the financial capacity for the coming years of change".

For his part, Pavel Vidal, who has conducted an analysis of the economic situation in Cuba in recent years and a comparison with Latin American countries, has indicated that entrepreneurs working on the island remain interested in investing in the country.

As he explained, the coexistence of the Cuban peso with the convertible peso (CUC) implies the existence of a subsidized exchange rate, so "there is a business sector that has survived with the implicit subsidy that the change implies". On this point, he added that with the disappearance of the CUC, which was not completed in the 1990s with the start of the monetary reform, "a greater adjustment of the state sector, a new reform of employment and a new structure of the private sector" is needed to incorporate workers and boost the economy that is being ceded to the public sector.

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