The Philippine economy expanded 2.8 percent in the first quarter, missing the 3.5 percent forecast from a Reuters poll, the statistics agency reported Thursday.
Economic Planning Secretary Arsenio Balisacan cited the combined impact of the Middle East crisis, a delayed 2026 budget passage, and elevated oil prices as key drags. On a seasonally adjusted basis, GDP rose 0.9 percent quarter-on-quarter, below the 1.5 percent expected.
Inflation accelerated to a three-year high of 7.2 percent in April, above the central bank's target range, driven by surging fuel costs. Balisacan said the government will push to regain momentum through accelerated infrastructure spending but will revise the growth target lower due to global uncertainty.