HSBC forecasts zero economic growth in Armenia in late 2009

YEREVAN, March 9. /ARKA/. Analysts and experts at HSBC forecasts zero
economic growth in Armenia by late 2009, Tim Slater, executive director
general of the bank, said while answering the question ARKA News Agency
put to him.

World Bank thinks the same, while International Monetary Fund predicted
1.5% slowdown.

Slater said that his bank found zero growth a quite positive result,
especially amid dwindling inflow of private transfers.

Slater also said referring to HSBC analysts’ forecast that a
three-percent GDP decrease will be recorded in Russia by late 2009.

They said Kazakhstan will face 2.5% and Ukraine 9% decline.

The HSBC executive director general said that Georgia will find itself
in more advantageous situation thanks to the financial injections it
expects from EU donors, as a year earlier.

He also said that HSBC experts forecasted 10- to 12-percent inflation
in Armenia explaining that by two factors ` increase in prices for
imports because of national currency depreciation and rise in consumer
prices for gas and water.

HSBC Bank Armenia, subsidiary of HSBC Bank Plc, was registered on
September 25, 1995.

HSBC Bank Plc holds 70% of HSBC Bank Armenia shares. The remaining 30%
belong to overseas Armenian investors.

Central Bank of Armenia forecasts eight- to nine-percent inflation for
2009.-0—