The European Union's statistics bureau Eurostat raised on Thursday its economic forecast for the euro zone, saying the 13-nation economy grew by 0.7 percent in the first quarter this year, compared to the previous three months.
Year on year, the economic growth rate in the 13-nation bloc sharing the same currency was 3.1 percent. A previous estimate from Eurostat had put the quarterly rate and yearly rate at 0.6 percent and 3.0 percent respectively.
As widely expected, the eurozone economy slowed down in the first quarter due to stagnant household consumption, hit by a value-added tax rise in Germany since the beginning of this year.
In the last quarter of 2006, the eurozone economy grew by 0.9 percent quarter on quarter and 3.3 percent year on year.
Figures showed the eurozone economy was mainly driven by strong investment in the first three months, which grew by 2.4 percent quarter on quarter.
Exports only rose by 0.8 percent after 3.3 percent in the fourth quarter of last year, arousing concerns that a strong euro was affecting exports.
But the European Commission said recently in a quarterly eurozone report that the ongoing appreciation of the euro may not have significant effect on exports.
In the first quarter, Ireland recorded the highest growth rate, which was 4.7 percent. Both Germany and France registered a quarterly increase of 0.5 percent.
In the 27-nation EU, the growth rate was 0.7 percent quarter on quarter and 3.3 percent year on year.
Among the main partners of the EU, the U.S. economy grew by 0.2 percent in the first quarter of 2007 and Japan by 0.8 percent.
Source: Xinhua
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