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Raul Castro prepares Cuba for tough year despite US opening

Cuba's President Raul Castro casts his vote to elect a new member of the state council, during the twice-annual legislative session at the National Assembly in Havana, Cuba, Tuesday, Dec. 29, 2015. The assembly will hear a detailed report on the progress of the gross domestic product of the Caribbean nation, which was estimated by authorities to grow by four percent. Plans for 2016 will also be announced. (Ismael Francisco/Cubadebate via AP) Cuba's President Raul Castro casts his vote to elect a new member of the state council, during the twice-annual legislative session at the National Assembly in Havana, Cuba, Tuesday, Dec. 29, 2015. The assembly will hear a detailed report on the progress of the gross domestic product of the Caribbean nation, which was estimated by authorities to grow by four percent. Plans for 2016 will also be announced. (Ismael Francisco/Cubadebate via AP)

By Associated Press December 29, 2015 1 min read

HAVANA (AP) – President Raul Castro is warning Cubans to prepare for tough economic conditions in 2016 despite the warming of relations with the United States.

He says low oil prices have damaged the outlook of an economy that depends on billions of dollars of subsidized oil and cash from Venezuela, which is undergoing political and financial turmoil.

According to state media, Castro told the country’s National Assembly on Tuesday to expect 2 percent growth in gross domestic product next year, half the rate his government reported in 2015. He said that falling oil prices lowered the cost of imported goods but hurt the island’s relationship of mutual aid with Venezuela. Cuba has sent thousands of doctors to Venezuela in recent years in exchange for oil and cash payments at highly beneficial rates.