Cuba Eases Private Business Restrictions to Combat Economic Crisis

Cuba implemented a series of economic reforms on July 30, 2026, to mitigate a humanitarian crisis marked by severe energy and medicine shortages. Approved by the National Assembly of People's Power in June, the measures remove 46 of 125 prohibitions on private industry and relax 35 additional regulations. These changes follow a tightened oil blockade imposed by the United States in January 2026, which exacerbated infrastructure decay and blackouts.

Under Decree 160, the government expanded the role of micro, small, and medium-sized enterprises in sectors including health, energy, and education. Key authorizations include the sale of medicines via private pharmacies, the creation of private elderly care facilities, and the direct import of electric vehicles. The state also authorized private banking and launched a pilot private exchange house while removing employee caps for small businesses.

To streamline government, the state is reducing its ministries from 27 to 21 and eliminating 92,000 public sector jobs. Despite these shifts, the government maintains strict state control over tobacco production, internet access, and news broadcasting. Miguel Díaz-Canel, President of Cuba, stated the reforms were necessary as the country simply cannot continue on its current course. Prime Minister Manuel Marrero Cruz defended the measures before the National Assembly, asserting that the changes strengthen the socialist model rather than replacing it.