For centuries, the economy of Havana and Cuba was based on the production of sugar. It is still an important part of the economy, but is centered elsewhere on the island.

During the first half of the 20th century, tourism became an important contributing factor to the health of Havana's economy. After the Revolution, Castro de-emphasized tourism as a major industry. Havana also lost the money that Americans brought in when the United States embargo was put in to place. In the late 1980s, Castro began to try and revitalize Cuba's tourist industry, and today it is once again becoming a popular tourist destination.

Havana is the primary port in Cuba, and is still busy exporting the products manufactured throughout the island. Sugar is a major export, as well as the famous Cuban cigars and rum. In Havana, there are also chemical and pharmaceutical manufacturing, whipbuilding, and meat-packing industries. The port also supports a sizable fishing industry.

After the Revolution, Havana suffered economically as Castro's government tried to spread industry throughout Cuba. The small towns and cities of Cuba were much poorer overall than Havana, and the government wanted to distribute the wealth more evenly. However, Havana is still the center of industrial economic activity.

Virtually all businesses in Havana are under government control. There are a few entrepreuneurial businesses, but they are small and scattered throughout the city. All of the banking done in Havana as well as all of Cuba is done through the National Bank of Cuba, located in Havana.

When the United States embargo was placed on Cuba, Havana suffered a recession. Before the embargo, Cuba and the United States had enjoyed a close, mutually beneficial relationship. After the embargo, Castro turned to the Soviet Union for support. After the Soviet Union fell, Cuba experienced the largest economic crisis since well before the Revolution. They are still suffering from this situation although the economy is slowly becoming revitalized.