The war in Ukraine will cool what was supposed to be a hot economy this year, finds a new analysis by the Economist Intelligence Unit.

Why it matters: Economic ripple effects from the war — like the surge in commodities prices and the supply chain disarray that's ensued — will spread far outside the borders of Ukraine and Russia.

Driving the news: The EIU's report, published Tuesday evening, finds the war will knock half a percentage point off of its previous GDP forecast. It now sees the global economy growing 3.4% in 2022.

• Among G7 nations, the sharpest decline in outlook was in Europe, especially Italy and Germany, which are both reliant on Russian energy imports.

Worth noting: Let's not forget about the people of Ukraine. EIU analysts expect the war with Russia to crater the Ukrainian economy by a whopping 47% in 2022.

• "We do not believe that Ukraine's GDP will recover to pre-war levels for more than a decade," analysts at the consultancy wrote.