Eurozone economy grows more than expected in first quarter

The Eurozone economy grew more than expected in the first quarter, according to the preliminary flash estimated published by Eurostat on Friday.

Seasonally-adjusted gross domestic product rose 0.6% compared with the previous quarter when it grew 0.3%. This was stronger than the 0.4% growth pencilled in by economists.

On a year-on-year basis, seasonally-adjusted GDP was unchanged, up 1.6%, versus expectations for a nudge down to 1.5%.

For the wider EU-28 group of countries, GDP grew 0.5% in the first quarter compared to the previous three months and 1.7% on the year.

Capital Economics said the 0.6% growth means the Eurozone outgrew both the US – very comfortably – and the UK in the first quarter.

“The numbers provide a solid start to the year, particularly against a background of worries over the global economy in Q1. But they look a bit out of line with broader survey evidence of both activity and sentiment, which have generally softened this year.

“And two recent supports to growth – the effects of previous declines in the euro and oil prices – are still likely to fade over the coming quarters.”