MANILA, Philippines ? The Philippine economy bounced back from an anemic performance in 2009, posting a 7.3-percent growth in its gross domestic product (GDP) the first quarter from a measly 0.5 percent a year ago to beat most expectations.

Government officials credited election spending, sustained rise in remittances, and improved business and consumer confidence ? which resulted in an increase in spending for goods and services ? for the robust growth of the economy in the first three months.

The latest growth was the fastest since after the economy registered an 8.3-percent GDP expansion in the second quarter of 2007, according to the National Statistical Coordination Board.

GDP, the more common measure of an economy, is the sum of the values of goods produced and services rendered within the economy in a given period.

Similarly, the country's gross national product (GNP) ? the sum of the values of goods produced and services rendered by Filipinos here and abroad ? posted a higher-than-expected growth rate. It rose by 9.5 percent in the first quarter, up from only 3.3 percent in the same period in 2009.

"The improvement in the global economy, brighter economic outlook, increased business and consumer confidence, and election-related spending all contributed to the resurgence in economic activities," Augusto Santos, director general of the National Economic and Development Authority, said in a press conference on Thursday.

"These more than offset the adverse impacts of El Niño in the production of the agriculture sector, particularly the crops and the fishery sub-sectors," Santos added.

The Philippines' rebound from 2009's economic slowdown has been consistent with projections that the global economy would recover after suffering from a recession in 2009 due mainly to economic woes in the United States and Europe ? two of the biggest export markets and home to many overseas Filipino workers.

Better economic conditions offshore ? attributed to stimulus spending by governments across the globe ? helped sustain rise in remittances, which normally fuel consumption by Filipino households. These likewise led to a rebound of the Philippines' export sector, which suffered from falling incomes in 2009.

NSCB Secretary General Romulo Virola said in the same press conference that growth of the economy in the first quarter was supported by the industry and services sectors, the growth rates of which outweighed the poor performance of the agriculture, forestry and fisheries (AFF) sector.

Industry ? which includes manufacturing, utilities, and mining & quarrying ? grew by 15.7 percent in the first quarter, reversing the 2.6-percent contraction in the same period last year. Growth of this sector was led by manufacturing, which expanded by a robust 20.7 percent, a turnaround from the 7.6-percent decline last year.

Services, which include the continually booming business process outsourcing sub-sector, grew by 6.1 percent in the first quarter, accelerating from 1.9 percent a year ago.

On the other hand, battered by the dry spell, the agriculture, forestry and fishery sector contracted by 2.5 percent in the first quarter, reversing the 2.1-percent growth in the same period in 2009.

Santos said growth of the economy in the first quarter helped create additional 1.73 million jobs. He said the Philippines could expect a reduction in the unemployment rate this year as a result of better economic conditions.

Remittances in the first three months amounted to $4.3 billion, up 7 percent year-on-year. Santos said remittances helped increase domestic demand, which in turn boosted incomes of businesses.

The Philippines' improved economic performance in the first quarter reflected similar trend among Asian countries.

Like the Philippines, other developing Asian countries export to the West and so they benefited from higher export income with the recovery of economies of the United States and Europe.

The following are the growth rates of neighboring countries in the first quarter: Singapore (15.5 percent), Thailand (12 percent), Malaysia (10.1 percent), Vietnam (5.8 percent), Taiwan (13.3 percent), China (11.9 percent), Hong Kong (8.2 percent) and South Korea (7.8 percent).

Dennis Arroyo, director for policy and planning at the National Economic and Development Authority, said that given the robust growth of the Philippine economy in the first quarter, the government will revise its growth target for the year, which was set at a conservative range of only between 2.6 and 3.6 percent.

However, Arroyo said the government's economic team would continue to monitor possible factors that could drag down growth of the economy in 2010.

Santos said these included the debt problems of Greece and other countries in the Eurozone that are somehow dampening investor confidence not only on developing countries in Europe but also on emerging Asian economies.

Santos said the possibility of a La Niña in the second half could further drag down performance of the agriculture, fisheries and forestry sector.

Santos said that to ensure that the economy could sustain its encouraging first quarter performance, the government would have to increase spending on infrastructure, social services, and education. To do so, he said, the government should enhance its tax collection.

"Equally crucial is the need to improve revenue collection... We should take advantage of the renewed confidence of both businesses and consumers to direct the country to a level of growth that is not only high but also pro-jobs and inclusive," Santos said.