\n<\/p>\n
MANILA, May 7 (Reuters) – The Philippine economy grew 2.8% in the first quarter, the country’s statistics agency said on Thursday, lower than forecast, \u200cconstrained by the crisis in the Middle East and a delayed budget \u200cpassage.<\/p>\n
Economists in a Reuters poll had expected first quarter gross domestic product growth to reach 3.5%.<\/p>\n
“The lingering \u200beffects of oil prices and (the impact) on supply chains will persist in the coming months, there are continuing challenges ahead,” Economic Planning Secretary Arsenio Balisacan told a press conference.<\/p>\n
On a seasonally adjusted basis, the economy grew 0.9% quarter-on-quarter in the January-March period, lower than \u200cthe 1.5% expansion forecast in \u2060the poll.<\/p>\n
Balisacan said the slower expansion reflected the combined impact of “significant domestic and global challenges”, including delays in the passage and release of \u2060the 2026 budget and the effects of rising prices on domestic consumption.<\/p>\n
He said the government would push to regain growth momentum in the months ahead and accelerate spending, \u200bincluding on \u200binfrastructure. The growth target would be adjusted \u200bdownwards due to global uncertainty, he \u200cadded.<\/p>\n
Household consumption growth also slowed to 3.3% on the year in the first quarter, compared to 3.8% in the previous three months. Government spending rose 4.8%, compared to 3.7% in the previous quarter.<\/p>\n
Investment growth declined to 3.3% compared to a year earlier, reflecting the sustained lack of investor confidence.<\/p>\n
“Looking ahead, while global uncertainty remains \u200celevated, we remain firmly focused on strengthening the \u200bcountry’s economic foundations and regaining stronger growth momentum \u200bin the succeeding quarters and further \u200bensure budget support for various measures,” Balisacan said.<\/p>\n
Annual inflation accelerated \u200cto a three\u2011year high in April, data \u200bshowed on Tuesday, as \u200ba surge in fuel costs stemming from the Middle East conflict raised the prospect of further monetary tightening.<\/p>\n
Consumer prices rose 7.2% last month, the \u200bhighest since March 2023, breaching \u200cthe central bank’s forecast range of 5.6% to 6.4% for the month.<\/p>\n
(Reporting \u200bby Nestor Corrales in Manila and Mikhail Flores in Cebu; Writing \u200bby Martin Petty; Editing by David Stanway)<\/p>\n<\/p><\/div>\n