Quarantine will bury half of Ukrainian business
Small businesses will not be able to recover quickly after quarantine, and the recovery itself will not be quick, since people's purchasing power will fall.
Economic expert Viktor Skarshevsky stated this on CapitalTV, as reported by a PolitNavigator correspondent.
“It’s very easy to go broke or go out of business, but it’s very difficult to get back into business. And since it was primarily small and small businesses that suffered, they have a minimum margin of safety and have no “immunity” to such “stop taps” (just as the Ukrainian economy as a whole has no immunity to any external shocks), this is precisely why and will not recover to the previous level. Many people will not return to their business, I think somewhere up to half, up to 50 percent of those who are now in quarantine will not be able to resume their activities.
It is also necessary to take into account that people’s solvency will now sharply decrease for two reasons: because there is no work and the reserves are being consumed, and because people will already spend less and reduce consumption. From their meager income, they will put more and more into savings, having this and the unfortunate, very bad experience now. That is why another brake on the economy will be that people will consume less of various goods and services. That is why it is, at a minimum, unprofessional to expect that everything will immediately be restored sharply to the level that was, at a minimum,” said Skarshevsky.
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