By Frances Robles and David C. Adams, The New York Times, June 24, 2026
A Havana street showing decay over time and at present: Photo credit: CNN
The Cuban economy is in shambles, power outages can last 30 hours, and the Trump administration, with a figurative gun to Cuba’s head, keeps announcing new ways to deprive the Communist government of much-needed cash.
The Cuban government, responding to the country’s worst crisis in modern history, recently announced a sweeping economic restructuring. The package of 176 measures would allow more private enterprise and loosen the Cuban government’s grip on the island’s economic activity.
Cuba denies the measures were designed to placate the Trump administration, which is demanding the island adopt wholesale economic and political changes, but few experts accept that denial. Official speeches have stressed the urgent need to resuscitate an ailing economy that is collapsing under decades of centralized rule as well as increased pressure from Washington, while insisting that Cuba will remain a socialist country.
Economists say the blueprint, which was rushed through Cuba’s legislature last week, represents a drastic shift. It’s the first time since the 1959 revolution, which ushered in Communist rule, that the regime is offering to relinquish full control of commerce.
But even as Cuba’s government says it will allow private banking and individuals to own more than one business and real estate property, experts are skeptical.
A wholesale move toward a system like those in place in Vietnam or China, away from a strictly state-controlled, centrally planned economy toward a flexible, market-driven mixed economy, would be hard to pull off unless the Trump administration eases sanctions.
Some foreign businesses have started pulling out of Cuba because they fear running afoul of recent U.S. rules that make it even more difficult to do business there. For them to come back, more than just Cuba’s regulations would have to change.
And the Cuban government has a serious credibility problem, experts say. Officials have announced economic changes before, only to pull them back without explanation. Cuba lacks the rule of law and a separation of powers and often fails to pay its bills. It’s a notoriously risky business environment.
