Manila - Philippine economic growth slackened to 5.2 per cent in the first quarter of 2008 from a year ago, dragged down by rising oil prices and the slowdown in the US economy, the government said Thursday.

Gross domestic product (GDP) growth in the January-March period was down from 7 per cent in the first quarter of 2007, the National Statistical Coordination Board said.

"After a four-quarter streak of surprising performance (in 2007), the Philippine economy succumbed to rising oil prices, the slowdown in the US economy and the negative effects of a strong peso," said Romulo Virola, the board's secretary general.

Last year, the Philippines' annual GDP grew by a robust 7.3 per cent, its best performance in over three decades.

Gross national product, which includes income from abroad, such as remittances of millions of overseas Filipinos, expanded by 7.3 per cent in the first three months of 2008, faster than 6.6 per cent in the same period last year.

Exports, however, plunged to negative 11.1 per cent in the first three months of 2008 from positive 10.8 per cent in the same period last year due to the crisis faced by the US economy.

Socio-Economic Planning Secretary Augusto Santos said the first quarter GDP growth was driven by the services sector, which expanded at a "healthy" but slower rate of 6.9 per cent compared to 8.4 per cent in the previous year.

"Industry growth was sluggish at 3.9 per cent compared to 6.6 per cent posted in the same period in 2007 on account of the decline in public consumption and weak exports," he said.

The agriculture sector grew 3 per cent, down from 4 per cent last year.

Due to the continuing uncertainties, Santos said the government has decided to downgrade its overall GDP target for 2008.

"Looking forward, given the uncertainties and risks prevailing in the external environment, full-year GDP growth is expected to settle between 5.7 per cent and 6.5 per cent (compared to the previous target of 6.3 per cent and 7.0 per cent)," he said. (dpa)