Cuban President Announces Sweeping Measures to Revitalize Economy
Addressing the nation on state television, Díaz-Canel insisted the measures were not a concession to Washington but a deliberate and sovereign restructuring of Cuba's economic model.
"The country is not standing still. The country is intelligently confronting all of these circumstances. We cannot express everything we do so openly because the enemy is watching every step we take. Our response must be unity and solidarity," Díaz-Canel said.
The reform package — dubbed the Economic and Social Program for 2026 — will be submitted in the coming weeks to the Political Bureau of the Cuban Communist Party (PCC), one of the country's highest decision-making bodies, before being put to a vote in the unicameral National Assembly of People's Power (ANPP).
Among the headline measures: agricultural producers will gain greater operational flexibility; the mandatory role of state companies as intermediaries in foreign trade will be abolished; and restrictions on vehicle imports, including electric vehicles, will be lifted. The number of government ministries will also be trimmed from 27 to 20 as part of a drive to reduce bureaucracy and streamline the state apparatus.
Díaz-Canel additionally announced the gradual phasing out of blanket product subsidies, which will be replaced by targeted social assistance directed specifically at vulnerable citizens. Cubans living abroad will be granted equal economic rights to residents on the island, a measure analysts say could unlock significant diaspora investment.
Tourism Sector in Freefall
The reforms come as Cuba's once-vital tourism industry stands on the edge of collapse. According to data from the Cuban National Office of Statistics and Information (ONEI), just 328,608 foreign tourists visited the island during the first four months of 2026 — a staggering 55.8% decline compared to the same period last year. In April alone, arrivals fell to 30,551.
The slide has accelerated as major international hotel operators abandoned the country under the weight of tightening US sanctions. Spain's Meliá Hotels International and Iberostar, Canada's Blue Diamond Resorts and Indonesia's Archipelago International all announced full or partial withdrawals from Cuba in June, casting uncertainty over the future of roughly 50 hotels — most of them state-owned and operated through Gaviota, a subsidiary of the military-controlled conglomerate GAESA.
In response, Díaz-Canel said Cuba would open its tourism sector to new business models and operators, seeking to fill the vacuum left by departing foreign firms.
Critics, however, have noted the reforms remain short on specifics — with no implementation timelines, supporting legislation or enforcement mechanisms yet announced. Many of the proposals, including municipal autonomy and expanded powers for state enterprises, have featured in official speeches before without materialising into concrete policy.
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