Cuba Business

Export of Cuba services generate $9billion in 2008 but numbers are suspect

Posted January 08, 2009 by publisher in Cuba Business.

(Original title: Cuba says exports of services tops $9 billion)

By Marc Frank | Reuters

Cuban exports of services grew by 6.2 percent in 2008, topping the $9 billion mark for the first time and consolidating their position as Cuba’s most important source of foreign exchange, the government said this week.

The export of services income (officials say more than half comes from leftist ally Venezuela) has enabled Cuba to more or less balance its external finances in recent years despite a huge trade deficit that soared to $11.6 billion in 2008.

The National Statistics Office of Cuba reported 2008 service exports at $9.2 billion, up from $8.6 billion in 2007.

Cuba does not specify what it includes within the service export category, though officials have said tourism and related revenues, the export of medical and other technical services and donations fall within it.

Cuba said it received $2.5 billion from tourism in 2008.

Revenues from pharmaceutical and other joint ventures abroad may also be included, according to local economists, as well as the training of foreign students.

Non-tourism related service exports began increasing dramatically after a 2004 accord with Venezuela, under which the oil-rich South American oil-producing country pays Cuba for massive health care assistance and other services.

Cuba reported 40,000 of its citizens worked in Venezuela last year, 30,000 of them in the health sector.

Before the 2004 agreement with Venezuela, Cuba’s service exports totaled less than $4 billion a year, with tourism and related activities accounting for more than half of that.

The government reports foreign exchange data in the convertible peso which it pegs at $1.08 U.S. (Editing by Jeff Franks and Anthony Boadle)

Member Comments

On January 08, 2009, publisher wrote:

This article makes my head spin. I can see why it took Marc Franks, Jeff Franks and Anthony Boadle to write and edit this small little article.

Even after reading this article a couple times, there are no hard numbers and NOTHING can be verified or even pegged to international accounting standards because the Cuban government doesn’t allow any independent auditing.

So, what can you take away from this?

Exports of “services” including tourism (go figure that one) are up.

Let me see if I got this right. Here’s what’s included in the exported services:

tourism and related revenues
export of medical and other technical services
pharmaceutical and other joint ventures abroad
training of foreign students

So, revenue from tourists, doctors in Venezuela, donations, pharmaceutical and joint ventures abroad and training of foreign students.

Interesting export business.

I wish I could say congratulations to Cuba but it’s all just more shit propaganda from a desperate Cuban government looking to hide it’s dead beat debt status, horrible credit rating and devastation from three hurricanes.

All is well and good in Cuba according to the National Statistics Office.

On January 09, 2009, gframe wrote:

Tourism is included because Cuba exports to foreign companies with facilities in Cuba for tourism. Eventhough most cubans work in Cuba. Payment for cuban workers is in hard currency, however, so it does make sense. From Venezuela Cuba gets oil and sell half of it on world markets(about 50,000 bbls a day) or 2.5 million dollars a day

On January 10, 2009, bernie wrote:

Perhaps:  Cuba used the same accounting firm that was employed
by Bernie Madoff, Ken Lay (enron) and only GOD knows how many
other Wall street firms?????