FRANKFURT / Reuters – The Euro zone’s economy will experience slower economic growth due to higher inflation and trade disruptions from Russia’s invasion in Ukraine. A poll of economists by the European Central Bank on Friday showed that this caused a slowdown and impacted confidence.

According to the ECB Survey of Professional Forecasters, inflation was at 6% in 2018, which is twice the rate predicted two months ago. However, it was still well above the 2% goal for the long-term according to economists.

In a press release, the ECB stated that “Regarding near-term outlook”, respondents viewed inflation primarily as influenced by ‘cost push’ factors rather than demand-pull’ factors. They also considered that conflict in Ukraine had re-ignited price pressures that were showing signs of peaking and had increased them.

This year’s growth was slower than the 4.2% recorded in the prior SPF. The ECB stated that “almost all” respondents attributed this decline to the repercussions from the Russian invasion.

“Aside from increased energy and commodity prices, disruptions within some sectors, and the imposed penalties, they noted the fact that the situation had caused falls in business confidence, consumer confidence, and loss of purchasing power to households,” said the ECB.

2022 2023 2024 longer term

HICP (%) 6.2.4.1.9 2.1

GDP GROWTH % 2.9 2.31.8 1.4