Cuba's Private Sector Surpasses State in Retail Sales for First Time Since Revolution

For the first time since Fidel Castro's 1959 revolution, Cuba's private sector has overtaken the state in retail sales, according to new data from the National Statistics Office. In 2024, the non-state sector accounted for 55% of retail sales by value, up from 44% in 2023.

This shift marks a significant change on the Communist-run island, where the government has slowly expanded private enterprise since the Soviet Union's collapse in 1991. Economic difficulties, including a shrinking state-run economy, frequent blackouts, and high inflation, have pressured the state sector.

Despite this, the state continues to control many retail outlets with limited goods. Informal markets like Havana's 100th Street Bridge Fair have flourished, filling the gap with products absent in state stores, though often at higher prices. Economic experts highlight ongoing debates within Cuban leadership about the future role of private businesses.

(With inputs from agencies.)