Cuban President Raul Castro has ruled out large-scale market reforms to revive the communist island's struggling economy.

Workers to set up SMEs

But Mr Castro said the role of the state would be reduced in some areas, with more workers allowed to be self-employed or to set up small businesses.

Urgent measures would aim to cut the "overloaded" state payroll, he said.

Economy Minister Marino Murillo

said that while the state would reduced its role in small businesses, it would continue to direct a centralised economy.