The main source of economic growth in Cuba is tourism but the government of Cuba also sponsors a wide range of domestic and foreign economic activities that boost the value of the Cuban currency. In terms of tourism, Cuba has one of the best tourist destinations in the world with the gorgeous Orient beach, the beautiful sandy beaches, and the diverse marine life. Moreover, tourists can have the opportunity to enjoy the historical sites like the Alsacilla and the Havana Cathedral and the magnificent Havana cityscape. Meanwhile, the cuisine of Cuba is famous all over the world for its exotic and unique taste. Moreover, Cuba is home to many musical and dance bands that entertain tourists during the day and provide entertainment at night. All these economic activities help Cuba stay afloat and it continues to progress.
Private sector Cuba is one of the fastest growing tourist destinations in the world with over ten million visitors a year. Because of the increased tourism, the infrastructure of the island has improved tremendously. The hotels, restaurants and bars of the island are modern and the cost of living is very low. Moreover, due to the close proximity to the United States, a lot of goods that enter and leave the island can be bought cheaply by Americans which supports the overall economic well-being of the Cuban people.
The Cuban State Bank controls the overall flow of money in the island. It has been reported that the gross domestic product (GDP) of Cuba has grown at a steady rate of about 5% per year. This rapid economic growth has helped the state to generate more revenue which benefits the private sector of the economy. Many economists believe that the state is dependent on tourism for its existence and that without tourists Cuba would not survive as a state.
Another important aspect of the Cuban economy is the foreign trade, which accounts for about ninety percent of the total GDP. Cuba has one of the largest trade relations in the world with over fifty nations. This huge trade helps the state generate more revenue as well as helping the poor nation buy products that they need for their daily lives such as food and clothing. Cuba is also an important provider of services such as telecommunications, petroleum, medicine and finance, which are also useful to the international community.
Another interesting aspect of the Cuban economy is its dependence on oil and gas. The state produces about seventy percent of its electricity from hydropower and petroleum and about forty percent from natural gas. Over the last few years Cuba has developed a great deal . . . . . . of expertise in hydraulic engineering. It is also working hard to develop its hydroelectric power potential. A tremendous amount of rainforest was recently destroyed by a massive tropical storm, this in part is due to development in the water industry.
The private sector of the economy is also doing quite well. Cuban investment in the tourism industry has generated much needed employment for the Cuban people. All of these factors have played a role in the stabilization of the Cuban economy and have allowed the island to develop into a very stable country both economically and politically.