As is well known that most countries especially in Europe are vulnerable to the impact of the geopolitical conflict between Ukraine and Russia. This series of several sectors are beginning to face challenges including in oil prices.
Taking into account various recent factors, credit rating agency S&P Global decided to reduce its European zone growth forecast for the year to 3.3% from 4.4%, the previously agreed figure. This is because oil prices have soared higher following the Russo-Ukrainian war which affected household spending.
S&P in the report stated that they did not expect a recession for a full year, instead a decline in GDP growth to 3.3% this year from 4.4% previously.
European countries neighboring Russia and Ukraine have a high probability of being affected because europe is most vulnerable to the crisis.
S&P said the high uncertainty in the neighboring country then coupled with the risk of a downturn in the year’s economic growth and rising inflation would be something to consider.
