The Philippine economy expanded slightly faster in the first quarter, growing at 5.4 percent from 5.3 percent in the fourth quarter but slower than 5.9 percent in the same period in 2024.

''While this pace falls short of our initial expectations, it reflects developments from the broader global context of tempered economic activity amid persistent uncertainty,'' said Arsenio Balisacan, secretary of the Department of Economy, Planning and Development in a statement on Thursday.

He was referring to the tariff hikes announced by US President Donald Trump, where the Philippines was imposed a tariff rate of 17 percent.

These uncertainties have led the Bangko Sentral ng Pilipinas to look at the possibility of slower growth this year. The government is eying six to eight percent growth for 2025 to 2028, the Development Budget Coordinating Committee (DBCC) said.

"Amid the global realignment of trade and investments, the government must accelerate its efforts to expand trade partnerships with key economies such as the European Union, United Arab Emirates, United States and other potential markets,” Balisacan added.

Contributors to first quarter growth were wholesale and retail trade, repair of motor vehicles and motorcycles, 6.4 percent, financial and insurance activities, 7.2 percent and manufacturing 4.1 percent.

Industry recorded the fastest quarter-on-quarter growth of two percent while agriculture rose 1.8 percent and services 0.8 percent.

Declining food inflation backed household final consumption, which grew by 5.3 percent year-on-year, faster than 4.7 percent in the fourth quarter. Yzabela Velez-White/DMS