The Philippines – until now a rare example of economic growth in the global downturn – reported an unexpected contraction for the first quarter and revised downward positive figures from earlier periods, as the government faced the prospect of recession.

Government statisticians reported that gross domestic product fell 2.3 per cent from the fourth quarter and grew a slim 0.4 per cent from a year before, well below the official forecast of 1.8-2.8 per cent growth.