Norwegian economy faces negative consequences of war in Ukraine, says statistics agency by Reuters

© . FILE PHOTO – A view over the harbor in Stavanger, Norway, Oct. 11, 2015. REUTERS/Stine Jacobsen OSLO () – The Norwegian economy has recovered from the coronavirus pandemic, but now faces a negative impact from the Russian invasion of Ukraine, Statistics Norway (SSB) said it when it released new forecasts on Friday. “The war in Ukraine is severely hampering the growth prospects for our trading partners in Europe, which in turn has a negative impact on the Norwegian economy,” the agency said. The Norwegian central bank is likely to raise interest rates four times this year and once next year, to 1.75% by the end of 2023, SSB added. Gross domestic product (GDP) for the mainland economy, excluding the country’s oil and gas industry, is expected to grow by 3.6% this year, slightly below the 4.1% forecast in December, according to SSB. “Predictions assume that the war in Ukraine will be over in a few months. If this assumption is not realized, the consequences for the Norwegian economy could be worse than estimated,” the agency said. Core inflation is expected to rise 2.1% in 2022, below a previous forecast of 2.5%, while the 2023 forecast is now 2.0%, ahead of the previous forecast of 1.7%. Wages are likely to increase by 3.6% and 3.8% this year and next, ahead of previous forecasts of 3.3% and 3.5% for 2022 and 2023 respectively. Disclaimer: Fusion Media would like to remind you that the information on this website is not necessarily real-time or accurate. All CFDs (Stocks, Indices, Futures) and Forex prices are not provided by exchanges but rather by market makers, and therefore prices may not be accurate and may differ from the actual market price meaning prices are indicative and not suitable for trading purposes . Therefore, Fusion Media does not bear any responsibility for any trading losses that you may incur as a result of using this data. Fusion Media or anyone associated with Fusion Media accepts no liability for any loss or damage resulting from reliance on any information, including data, quotes, charts and buy/sell signals on this website. Be fully informed about the risks and costs associated with trading the financial markets, it is one of the riskiest forms of investment possible.

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