Europe is expected to see lower economic growth and higher inflation due to Russia's ongoing war on Ukraine, now in its eight week, according to a survey released by the European Central Bank (ECB) on Friday.
Respondents revised up their inflation expectations to 6% and 2.4%, for 2022 and 2023, respectively, said the ECB Survey of Professional Forecasters for the second quarter of 2022.
The previous estimates for inflation were 3% for this year and 1.8% for next year.
Economic growth forecasts were lowered to 2.9% for 2022 and 2.3% for 2023. The previous expectations stood at 4.2% and 2.7%, respectively.
"Forecasters cite war in Ukraine as main factor behind macroeconomic forecast revisions," the ECB said in a statement.
"According to respondents, these revisions mainly reflect indirect effects from higher energy and food prices and effects from supply chain disruptions," according to the survey.