The country’s agriculture sector expanded at its slowest pace in 11 years in 2009, with farm production hobbled mainly by bad weather, the Department of Agriculture said Wednesday.

This has heightened expectations that the broader economy will be hard pressed to achieve even the low end of the government’s growth target.

The Department of Agriculture said farm output, which accounts for a fifth of the country's gross domestic product, fell 2.43% on year in the fourth quarter, bringing 2009 growth to just 0.37% after substantial typhoon damage to crops.

The sector's performance was lower than the government’s downgraded growth forecast of 0.5%-1.5% for 2009 after two major typhoons in late September and early October hurt crops and farm infrastructure.
Philippine farm output in 1998 contracted 8.85% following a severe and prolonged El Nino-induced dry spell that damaged crops across Asia.

“A contraction from a big contributor (such as agriculture) may be an indication of potential disappointment in terms of meeting GDP projections,” said Jose Vistan, AB Capital Securities research director.