Eurozone growth expands by 0.6% in 1st Quarter

The Eurozone's economy expanded by 0.6 per cent in the first three months of this year, posting more solid growth than previously expected, new data showed on Tuesday.

    The statistics agency Eurostat had previously estimated that gross domestic product (GDP) rose by 0.5 per cent in the 19-country European currency union. But its final data revised that figure upwards to 0.6 per cent, exceeding analysts' expectations, the (dpa) reported.

    Despite adverse global circumstances, euro area growth has gained steam, after reaching 0.3 and 0.4 per cent in the last two quarters of 2015. On a yearly basis, the currency bloc's economy grew by 1.7 per cent in the first quarter of 2016, Eurostat said. 

    Across the wider, 28-country European Union, GDP rose by 0.5 per cent compared to the previous quarter, and by 1.8 per cent year-on-year. Britain, the largest EU economy not to have adopted the euro, posted quarterly growth of 0.4 per cent and a 2-per-cent expansion in GDP on an annual basis.

    Within the Eurozone, Romania and Cyprus posted the strongest growth at 1.6 and 0.9 per cent respectively, while the economy of powerhouse Germany expanded by 0.7 per cent, Eurostat said. Hungary, Greece and Poland saw their economies shrink, meanwhile.

    The Eurozone has struggled with feeble growth, low inflation and high unemployment after emerging from recession three years ago. Its more recent problems include renewed concerns over Greece and the fallout of Britain's potential exit from the EU.