Ukraine’s economy is falling faster than expected

The economy Ministry expected the GDP decline in the first quarter by 0.9%, but the numbers were worse than the 1.2 per cent.

In the first quarter of 2020, the Ukrainian economy declined by 1.2%, according to the website of the Ministry of economy on Tuesday, may 12.

“As expected, the results of the March economic decline deepened,” – said in the message.

While in the first two months, his rating was 0.2%. And by the end of the quarter was for a decline of 0.9%.

Thus, the decline of the composite index production (SIP) at the end of the first quarter reached 3.8% compared to 1.8% at the end of two months.

According to the Agency, impact on this as the base effect (in March 2019 CIP growth accelerated from 0.5% to 2.6%) and first negative consequences of the spread of coronavirus in the world. Among them, the Ministry called logistical problems and reduced demand in the world for domestic industrial and agricultural products, as well as the introduction of quarantine measures to contain the pandemic within the country.

“The negative effect of the pandemic in March mainly felt production, which depend on global demand (metallurgy and engineering). While, on the contrary, due to the increase in demand has increased the production of pharmaceutical products and household chemicals”, – stated in the review.

The national Bank had earlier estimated the GDP drop in the first quarter of 0.5%.

According to NBU, in 2020 the Ukrainian economy will fall by 5%, but in 2021 will grow by 4.3%.

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