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Cuban gov't announces economic, energy restrictions for rest of 2016

Xinhua, July 9, 2016 Adjust font size:

The Cuban Minister of Economy, Marino Murillo, on Friday announced several measures to cope with a "difficult economic situation" in the second half of 2016, due to falling export prices and a decrease in oil imports.

Addressing the parliament, Murillo said the country faces a "tense" moment in its financial status and will reduce its expenses.

Falling prices of exports such as nickel, tobacco and rum, a limited availability of imported oil and fuel, as well as other economic problems have led the government to adopt severe cost-cutting measures in recent months.

"We will face economic and energy limitations in the second semester and we have decided to take concrete measures such as reducing expenses, saving on power and fuel, among other financial arrangements," said Murillo to the 505 lawmakers.

The government official said these measures would not affect "vital services" to the population and essential industries such as tourism and nickel.

A decrease in public bus services, cutting back on air conditioning at public offices, reduced work days at some state buildings and slashing fuel allotments for government vehicles by half were some of the measures announced by the Cuban minister.

"We will cut six percent of the nation's electricity consumption without affecting the residential sector," he added.

Venezuela's tough economic crisis has severely impacted the island which used to receive up to 100,000 barrels of oil per day from Caracas, but that amount has decreased substantially.

Murillo said the Cuban economy grew by 1 percent during the first semester of 2016, half of what had been projected, and added that the government sees a "restrictive and limited outlook" for economic growth in the coming months.

Earlier in the day, the National Assembly approved the economic roadmap that emerged from the Communist Party Congress in April.

The reforms begun six years ago under President Raul Castro have allowed an emerging private-sector to flourish, although the state still controls crucial economic areas. Enditem