Cuba Is #174

Cuba is #174 in Economic Freedom out of 176 Countries.

Every year the Heritage Foundation, a leading U.S. nonprofit, produces the Index of Economic Freedom Report and ranks how free and open each country’s economy is.

With a score of 25.7, Cuba is classified as "Repressed":

When it’s about baseball, every Cubans desperately wants to be #1. We need that passion where it really counts:

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Evidence clearly shows that greater economic freedom leads to higher standards of living, increased job creation, improved education and healthcare, greater prosperity, and enhanced environmental stewardship.

More About Economic Freedom

What Does Being “Repressed” Mean for Cuba?

Cuba's classification of “repressed” in the Index of Economic Freedom signals pervasive government control over the economy and heavy restrictions on individual freedoms. For the average citizen in Cuba, this classification means limited access to economic opportunities, scarce resources, and a lack of personal economic autonomy, leading to daily struggles to secure a stable income, access essential goods, and maintain financial security.

What categories doES Cuba DO well in?

To do well ("mostly free") a country must score 70 - 79.9. To classify as excellent ("free") a country must score 80 or higher. Cuba scores relatively well in this areas (scores out of 100):

Trade Freedom 72.8

Solutions

Cuba's three worst performing categories:

Government Spending 0.0
Fiscal Health 0.0
Financial Freedom 10.0

Cuba’s weakest category is Government Spending, with a score of 0.0 out of 100. This category assesses the size and sustainability of government spending relative to the economy. In Cuba, this zero score indicates that government expenditure is extremely high, consuming resources that could otherwise support a thriving private sector. To improve this score, Cuba could shift spending from state-run enterprises toward policies that support private business development and entrepreneurship, decentralizing control and allowing citizens more freedom to engage in economic activities.

The second weakest category is Fiscal Health, also scoring 0.0 out of 100. This category measures government debt levels and budget deficits, critical to economic stability. Cuba’s low score here reflects unsustainable government debt and significant deficits, straining the economy and limiting the resources available for public services and investment. To enhance fiscal health, Cuba could introduce policies to reduce budget deficits, perhaps by cutting non-essential spending, and explore avenues to stimulate revenue through small-scale privatization initiatives.

Financial Freedom, with a score of 10.0 out of 100, is the third weakest category and evaluates the independence of the financial sector from government control and the ease of accessing financial services. For the average citizen, this restriction means limited access to banking services, credit, and the financial tools necessary to invest in personal or business growth. Improving this area would require steps to liberalize the banking sector, encourage private financial institutions, and ensure that citizens have access to basic financial services, allowing them to participate more fully in the economy.

Cuba's Economic Freedom over time:

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