The drop in gross domestic product (GDP) of Ukraine in Q1, 2020 amounted to 1.2%, the Economic Development, Trade and Agriculture Ministry of Ukraine has said. Earlier, it forecasted GDP contraction at 0.9%.

"As expected, the economic decline deepened, according to the results of March," the ministry said, recalling that it forecasted a 0.2% drop at the end of the first two months of the year.

The reduction in the consolidated production index in Q1 is 3.8%, compared to 1.8% according to the results of the two months.

The ministry said that both the comparative base (the consolidated production index grew from 0.5% to 2.6% in March 2019) and the first negative consequences of the coronavirus (COVID-19) pandemic in the world influenced it. Among the negative consequences the ministry mentioned problems with logistics and a decline in demand for domestic industrial and agricultural goods in the world, as well as the introduction of lockdown restrictions aimed at containing the pandemic within the country.

As reported, the National Bank of Ukraine (NBU) predicted that the fall in GDP in the second quarter of this year will accelerate to 11.3% from 0.5% in the first quarter.

According to the bank, in the third quarter of this year, the economic decline will slow down to 5.3%, and in the fourth quarter to 2.3%, as a result of which, over the whole year, GDP will decrease by 5%.

The government forecasted a 4.8% drop in GDP in the amendments to the national budget of Ukraine for 2020.