MANILA -- The Philippine economy grew at its slowest pace in more than a year in the first quarter, but resilient exports and strong consumer spending are likely to keep momentum buoyant this year.
The pace was the weakest for the Southeast Asian economy since the last quarter of 2015, but the government said the economy was "broadly in line" to grow within its target of 6.5-7.5% for the year.
Gross domestic product grew 6.4% in January-March from a year earlier, government data showed on Thursday, below market expectations. The Philippine Statistics Authority revised growth in October-December 2015 to 6.3% from 6.7%.
Economists polled by Reuters had forecast the economy would expand 6.8% from a year earlier compared with 6.6% in the last three months of 2016.
"The Philippines remains one of the strongest performers among the major emerging economies in Asia," Economic Planning Secretary Ernesto Pernia told a news conference, adding that the first quarter's pace was only second to China's 6.9% clip. India has not released first-quarter data yet.
Mr Pernia said the slowdown could be explained by the absence of election spending which boosted growth a year earlier.
The economy grew a seasonally adjusted 1.1% from the previous three months, also less than the 1.5% forecast in a Reuters poll and the slowest in eight quarters.
To sustain the economy's growth momentum and ensure its effects are more broadly felt, President Rodrigo Duterte has promised to spend up to $180 billion over six years to build and modernise railways, airports, seaports and roads.
The stimulus would help offset the impact of protectionist US policies on remittances from overseas Filipinos and on American investment in business process outsourcing to the Philippines, a vital sector for the economy.