President Raul Castro has given his most sombre assessment of Cuba's economic situation since he succeeded his brother Fidel in February.

In a televised address before the assembly, Mr Castro said he would have to lift restrictions on salaries more slowly than anticipated.

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Raul Castro, 77, has raised hopes for change by taking steps to modernise Cuba's ailing state-run economy.

Reforms have included removing salary caps to boost incentives for workers, and decentralising of agriculture to increase food production.

But in his address, Mr Castro said quick action in raising salaries may not be possible.

He said: "It will depend on the economic situation of the country, inevitably linked to crisis in the world today, which could worsen.

"It wouldn't be ethical to create false expectations."

Raul Castro sat beside an empty seat reserved for the former president, who has not been seen in public since undergoing emergency surgery nearly two years ago.

(BBC)

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