SEOUL, April 24 (UPI) -- South Korea's economy unexpectedly contracted in the first quarter of the year, the country's central bank said Thursday, amid political turmoil at home and global uncertainty around the tariff scheme proposed by U.S. President Donald Trump. The Asian export powerhouse saw its first-quarter gross domestic product decline by 0.2% from the previous quarter, according to preliminary data released by the Bank of Korea. GDP fell 0.1% compared to the same period last year. In a forecast issued in February, the BOK had projected the economy to grow by 0.2% in the first quarter. The decline comes amid months of political chaos triggered by former President Yoon Suk Yeol's shocking declaration of martial law in December. He was impeached and ultimately removed from office by the Constitutional Court earlier this month in a drawn-out process that sharpened political divides in the country and weakened consumer confidence. The country continues to face a leadership vacuum until a snap election is held on June 3, with liberal opposition figure Lee Jae-myung seen as the heavy favorite. At the same time, the 25% "reciprocal" tariffs threatened by U.S. President Donald Trump have added to the unpredictable environment and shaken the export-dependent country. Trump announced the tariffs on April 2 but quickly put their implementation on hold for 90 days. Tariffs on steel and automobiles, two key South Korean industries, are already in place. "The prolonged domestic political uncertainty and the increased uncertainty in the trade environment due to the announcement of the U.S. tariff policy delayed the recovery of consumption and investment sentiment," BOK official Lee Dong-won told local media on Thursday. Lee added that deferred demand for high-performance semiconductors, the suspension of some construction projects and the large-scale wildfires that raged in the southeastern part of the country in March also exerted downward pressure on growth. Exports shrank by 1.1% quarter-on-quarter due mainly to a decline in shipments of chemicals, machinery and equipment, the BOK said. Construction investment fell by 3.2% and facility investment dropped by 2.1%, fueled by a slowdown in machinery such as semiconductor manufacturing equipment. Earlier this week, the International Monetary Fund sharply cut its forecast for South Korea's 2025 economic growth as part of an overall global decline reflecting "effective tariff rates at levels not seen in a century and a highly unpredictable environment." The April edition of the IMF's quarterly World Economic Outlook projected 1% growth for Asia's largest economy, down from a 2% forecast in its previous edition.