Experts from HSBC forecast zero economic growth in Armenia in 2009. Tim Slater, chief executive officer of HSBC Armenia, made an announcement containing such forecast. “We think that zero growth of GDP in Armenia will be a rather good result in consideration of the significant slowdown of money transfers into Armenia as a result of difficulties in other countries,” said Slater. He also said that HSBC experts forecast 10-12% inflation due to two factors till the end of 2009. First, as a result of the national currency inflation the prices of exported goods will grow. On the other hand, a high level of inflation may result from increase of the gas and water prices. As for the banking system, Tim Slater says 2009 will be a very hard year for banks. According to the HSBC Armenia CEO, the interest rates of credits in Armenian dram will grow, but the interest rates for credits in dollar and other currencies will stay the same and even may go down. By the way, HSBC experts assure that the only country to benefit from economic growth in the region will be Georgia, where plenty of investments on part of Euro Union donor countries are forecast to be made.
