Cuba is the second country with the highest inflation in the world, only surpassed by Zimbabwe, according to a list published on Sunday, August 21, by Steve H. Hanke, professor of applied economics at Johns Hopkins University, in Baltimore, United States.
“Cuba ranks second in this week’s inflation summary. On August 18, I measured inflation in Cuba at a whopping 135% a year,” Hanke noted on Twitter.
Consequently, the island is placed above other Latin American countries known in recent years for their high inflation, such as Argentina (position 5) and Venezuela (8). In addition, it has surpassed Sri Lanka and Turkey, which two weeks ago appeared ahead of Cuba in this indicator.
“The economic collapse knows no limits in the communist paradise of Cuba,” said the expert.
Cuban jurist and activist Fernando Almeyda said on Facebook that Hanke’s data shows the island’s citizens “exactly what you’re seeing: your salary doesn’t exist, production doesn’t exist, budget doesn’t exist, livelihood doesn’t exist. ..”
Hanke also recently said that “the communist regime in Cuba has pushed the country into an economic death spiral.”
In mid-March, the economist described Cuba as the “most miserable” country in the world, according to the 2021 Hanke Annual Misery Index (HAMI), after a package of measures applied on the island known as ” Ordering task”.
“Cuba, down dramatically from last year’s HAMI, now holds the inglorious title of most miserable country of 2021. As you can see, Cuba’s HAMI score was fueled by surging inflation of 1,221.8%. That level of inflation was not surprising, given Cuba’s devaluation of the peso by 95% during 2021,” the expert explained in a National Review article.
“Currency devaluations lead to increased inflation rates. Indeed, after a devaluation, inflation will pick up and so will the costs of producing goods and services, including exports, in the country that has devalued its currency. Inflation will steal any possible short-term competitive benefits that might initially accompany devaluation. This is exactly what happened in Cuba,” Hanke added.
The index of “miserable” countries is understood as the sum of the year-end unemployment, inflation and bank lending rates, minus the annual percentage change in real GDP per capita.