Cuban economy suffers from US restrictions

US President Donald Trump has recently reintroduced restrictions for Americans travelling to Cuba. The move hits Cuba's already shrinking state-run economy.

In this March 20, 2016 file photo, tourists ride in a classic American car past a balcony decorated with Cuban and US flags in Havana, Cuba.
AP

In this March 20, 2016 file photo, tourists ride in a classic American car past a balcony decorated with Cuban and US flags in Havana, Cuba.

Cuba's state-run economy – which is largely dependent on tourism – has been recently in a state of chaos because of the restrictions the United States has imposed.

Trump administration only allows Americans to travel to Cuba if they go with a group that's registered with the US government.

In addition to that, people working in tourism are earning their money in foreign currencies, but other sectors are paid in Cuban pesos.

"A school teacher earns $14 a month, what will you do with that? I make more in a day‚” says Pedro Garcia, a bike taxi rider in the Cuban capital.

The disparity has led to a two-tier economy, leaving Cubans outside the tourism sector at a significant disadvantage.

TRT World ’s Ediz Tiyansan reports from Havana.

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