Growth is expected to decline by 0.50–0.75 percentage points, the IIF adds in a recent report.
"Europe has made significant progress in reducing its dependence on Russian pipeline gas, but it has not eliminated its exposure to global energy markets," writes the IIF.
The problem is clear following Iran's blockade of energy transport through the Strait of Hormuz, which is pushing up global prices for oil and natural gas, shipping costs, and insurance premiums.
"Europe remains a large, rich and resilient economic area. But it operates in a global environment that is increasingly volatile and competitive," the IIF writes.
