HSBC analysts predict 0% economic growth in Armenia in 2009

PanARMENIAN.Net - As HSBC group predicts, Armenia may have 0% economic growth in 2009, said Tim Slyther Executive Director General of CJSC "HSBC Bank Armenia" at the press conference. He reminded that the year 2008 ended in 5-505 % economic growth fall.



As to the inflation expectations, the executive director general said that, in his opinion, the inflation in Armenia will reach 10-12% in 2009.It is conditioned by two factors: the price increase on imported goods resulting from the dram devaluation and the tariff increase on public utilities (gas, water, electricity). He also mentioned that the high inflation rate will be conditioned by lower transfers from Commonwealth countries.



The HSBS group analysts' forecasts regarding Armenia are optimistic, and they forecast a 0% domestic gross product by the end of the current year, whereas in Kazakhstan -2,5% fall, the Ukraine-9% fall. As Tim Slyther said, Georgia will be in an advantageous position as it expects assistance from CoE like in previous year.