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Economy of Havana


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Industry

Havana has a diversified economy, with traditional sectors, such as manufacturing, construction, transportation and communications, and new or revived ones such as biotechnology and tourism.

The city's economy first developed on the basis of its location, which made it one of the early great trade centres in the New World. Sugar and a flourishing slave trade first brought riches to the city, and later, after independence, it became a renowned resort. Despite efforts by Fidel Castro's government to spread Cuba's industrial activity to all parts of the island, Havana remains the centre of much of the nation's industry.

The traditional sugar industry, upon which the island's economy has been based for three centuries, is centred elsewhere on the island and controls some three-fourths of the export economy. But light manufacturing facilities, meat-packing plants, and chemical and pharmaceutical operations are concentrated in Havana. Other food-processing industries are also important, along with shipbuilding, vehicle manufacturing, production of alcoholic beverages (particularly rum), textiles, and tobacco products, particularly the world-famous Habanos cigars. Although the harbours of Cienfuegos and Matanzas, in particular, have been developed under the revolutionary government, Havana remains Cuba's primary port facility; 50% of Cuban imports and exports pass through Havana. The port also supports a considerable fishing industry.

In 2000, nearly 89% of the city's officially recorded labour force worked for government-run agencies, institutions or enterprises. Havana, on average, has the country's highest incomes and human development indicators. After the collapse of the Soviet Union, Cuba re-emphasized tourism as a major industry leading to its recovery. Tourism is now Havana and Cuba's primary economic source.

Commerce and finance

After the Revolution, Cuba's traditional capitalist free-enterprise
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