Most of economy's sectors performance worsened, except agrarian — National Bank

In Q1 2020, in terms of economic activities, the performance of practically all sectors of the economy worsened, the National Bank of Ukraine (NBU) says in a statement.

The only exception was the agricultural sector, largely due to the waning of a statistical effect that resulted from a shift in the timing of the harvest of the previous quarter’s crops, the message reads.

"The volumes of exports of goods and services rose at a slower rate, by 0.9% yoy, driven primarily by narrowing global demand and falling commodity prices. More specifically, the growth in agricultural exports (mainly grain exports) decelerated," experts say.

As reported, in Q1 2020, real GDP shrank by 1.3% yoy.

The main reasons for the decline in the Ukrainian economy in Q1, the NBU stresses, were the negative impact of quarantine restrictions on the service sector, a slump in investment, a deepening decline in public sector consumption due to the difficult fiscal situation, and weaker growth in private consumption and exports amid weakening external demand.

Previously reported that the implementation of the Program on Accelerating Private Investment in Agriculture started in Ukraine. The USD 200 mln loan was approved by the International Bank for Reconstruction and Development (IBRD) in August 2019.