The Russia-Ukraine crisis has caused a slowdown in economic activity and rising inflation across Europe, Norwegian online newspaper ABC Nyheter notes, citing the Swiss National Bank’s reports. The region has eventually faced soaring energy prices, with financial markets being caught up in turmoil.
According to Switzerland’s central bank, the economic fallout from this conflict continues to have a profound effect on Europeans. Moreover, experts believe that things are set to get worse.
The Swiss regulator has painted a rather gloomy outlook for the European economy. Among the countries with the darkest prospects are Germany, Britain, France, Italy, and Switzerland. According to estimates, their GDP figures could have been 0.1%-0.7% above current ones but for the Russia-Ukraine conflict. At the same time, the inflation rates would have been between 0.2% and 0.4% lower.
The bank expects the economic situation in Europe to be twice as bad within the next two years. As reported by ABC Nyheter, the effect of this confrontation on European countries is especially heavy as they have to deal with an increase in migration flows and extra military expenditures.