Economic growth soars in eurozone

Economic growth in the $8.5 trillion economy of the dozen nations sharing the euro accelerated in the first quarter to the fastest pace in three years as exporters benefited from burgeoning demand in the US and Asia.

The economy expanded 0.6% from the previous quarter and 1.3% from a year earlier, said Luxembourg-based Eurostat. The quarterly pace was faster than the 0.5% median forecast of 32 economists in a recent survey. Unlike the US, the quarterly expansion isn’t annualised.

Germany, France, Italy and the Netherlands grew faster than economists expected last quarter, in line with the European Central Bank’s forecast of a ‘gradual recovery’ this year. Growth is being fed by exports, with unemployment of 8.8% deterring consumer spending.