Cuba's economic slowdown reversed: gov't

Cuba has successfully reversed its economic slowdown that has haunted the island country over the past few years,the country's top leader Raul Castro said Wednesday.

Speaking at the closing of a legislative session, Castro said gross domestic product (GDP) grew by 4.7 percent by the end of June, and was expected to "remain around this figure at the close of this year," state daily Granma reported.

"This is very good, considering that last year we grew by 1 percent only," he noted.

Despite severe external financial constraints such as the U.S. trade embargo, Cuba has continued its "systematic payments to foreign creditors and suppliers, promoting its international credibility," Castro told legislators.

The U.S. and Cuba have agreed to restore diplomatic ties and will reopen their respective embassies on Monday, yet with the decades-old U.S. embargo still in force.

The trade embargo is one of Cuba's main concerns as it's been struggling to implement reforms and modernize its aging socialist economic system.

As planned, Cuba has maintained monetary and financial stability, with the inflation rate contained between 3 percent to 5 percent. However, the price of agricultural products has risen faster than the average wage, Castro admitted. Endi