The Norwegian economy has recovered from the coronavirus pandemic but is now facing the negative effects of the Ukrainian crisis, Statistics Norway (SSB) has said.

The war in Ukraine significantly limits the growth prospects of our trading partners in Europe, which in turn has a negative impact on the Norwegian economy, the agency said in a statement, Reuters reports.

Norway's central bank is likely to raise rates four times this year and once next, reaching 1.75% by the end of 2023, SSB added.