The main contributors to the decline were construction at -24.2 percent; other services, -38.0 percent; and real estate and ownership of dwellings, -13.2 percent, PSA Head Dennis Mapa said in an online briefing.
The 4.2 contraction in the first quarter followed the 8.3 percent decline in the fourth quarter of 2020.
Socioeconomic Planning Secretary Karl Kendrick Chua said that the latest economic performance "shows the limit of economic recovery without major relaxation of our quarantine policy."
"Once the present spike is over, we can implement quarantine relaxations in a phased approach to boost our recovery this year," Chua said.
"Our economy may slow down in early 2021 given recent developments, but we will not backpedal," Chua said, adding that "the country's strong economic position before the pandemic and improving economic data in recent months point to an economy that is on the mend."
Chua said the latest GDP performance is consistent with the recovery in the labor market.
Metro Manila and its four adjacent provinces have been under strict lockdown since March 29. The restrictions will remain in place until May 14.
The Philippines has been in varying lockdown levels since the government imposed a lockdown in mid-March last year, causing many businesses to close down temporarily.
The Philippine economy shrank by 9.6 percent in 2020, while it grew by 6.1 percent in 2019.
Latest comments