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The phrase "a depressing effect on" is correct and usable in written English.
It can be used when discussing the impact or influence something has that causes feelings of sadness or discouragement.
Example: "The constant news of natural disasters has a depressing effect on the community's morale."
Alternatives: "a disheartening impact on" or "a demoralizing influence on".
Exact(21)
Even natural wastage will have a depressing effect on regions that are overdependent on state employment.
Inevitably, this has had a depressing effect on a once prosperous town.
But his limitation on trade merely had a depressing effect on the economy.
But why have Republican demands so consistently had a depressing effect on the economy?
For those who fail again, it's demoralising, and overall the resit policy has a depressing effect on results.
The long-empty store has had a depressing effect on other smaller retailers, just as closed department stores have had in Newark and Montclair.
Similar(39)
The regression analysis (Table 4) showed a depressing effect of metal ions on all lymphocyte subgroups except for NK cells, which showed a modest and not statistically significant effect of being stimulated.
In flexible economies a low minimum wage seems to have little, if any, depressing effect on employment.
Greece's budget cuts, on the other hand, will have a strong depressing effect on an already depressed economy.
There is every chance that this list will have a similarly depressing effect on the debt markets as a list of dot.com firms that were running out of cash, published early this year by Barron's, had on Nasdaq.This is not a happy situation for a new president.
"Given American's size and what will likely prove to be a long, messy restructuring process, its bankruptcy could have a prolonged depressing effect on already precarious industry pricing and profits as travel demand continues to cool".
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com