The Cuban government says the economy grew by one point two per cent this year, below the predicted growth of two point five per cent.

Presenting the figures to the National Assembly, the economy minister, Jose Luis Rodriguez, said widespread drought had hit the sugar harvest and other crops.

The international financial crisis had also reduced available credits.

But Mr Rodriguez insisted that Cuba's economy was on the path to recovery.

Correspondents say foreign analysts and business leaders doubt the government's figures, and believe the economy may have recorded zero growth in 1998.

On Friday, the United Nations appealed for another ninety million dollars in international aid to offset food shortages.