Viktor Medved advised to save money.

KIEV. 15 May. UNN. Due to the downturn in business activity, the decline in GDP and job losses, it is better to refrain from spending that can be postponed and tighten our belts until the fall. This opinion was expressed by economic expert Viktor Medvid, the correspondent of UNN.

"It is definitely necessary to save money now. First of all, there is a decline in business activity. It is summer, which always means a decline in economic activity and, accordingly, a deterioration in the balance of payments, including currency fluctuations. As a matter of fact, it will continue until the end of summer, when the harvest begins. Once the harvest is in, the economy will start working a little bit. That is, revenue will come in, and so on. Currency fluctuations are also possible," Viktor Medved said.

He added that it is better to keep funds in foreign currency if it is a medium-term perspective, and in the short term - in hryvnia.

"As for acquisitions, it is certainly necessary to reduce the number of purchases as much as possible, given that the forecasts for a decline in GDP will certainly affect inflationary processes in Ukraine and job cuts. Accordingly, people may be laid off, or their partners may be laid off, or their customers may be laid off. That is, directly or indirectly, this may affect the level of current income. Accordingly, I recommend not making expenses that can be postponed, including capital expenditures. These expenses should be postponed at least until the fall," Viktor Medvid said.

He added that if the situation stabilizes, the expenditures could be made in the fall.

"If there is a need to buy some things, it is better to buy more inexpensive things... Of course, lower consumer spending leads to lower production, on the one hand. If we are talking about another indicator, again, it is what to spend on. In this case, I am not talking about spending on food, clothing, etc. These expenses are actually stable. People spend on them regardless of the crisis. Food, some clothing and footwear are also produced inside Ukraine," said Viktor Medved.

He noted that it is necessary to save on more expensive goods, such as household appliances, cars, building materials, etc., most of which are produced abroad.

"All these goods are imported, so a decrease in the consumption of imported goods leads to an improvement in the country's balance of payments and, accordingly, the country's economy improves. It works both at the macro and micro levels. If we were talking about reducing the consumption of goods produced in Ukraine, this would lead to fewer jobs, lower taxes, etc. But now we are talking about reducing consumption of goods that are actually imported. Therefore, there will be no deterioration in this regard, only improvement," Viktor Medvid added.