Eurozone GDP lower than expected

Euro zone Gross Domestic Product (GDP) rose a weaker than expected 0.3% in the fourth quarter from the third quarter, against economist's forecasts of 0.4%.

EU statistics office Eurostat said today that GDP in the euro zone grew by just 0.4% last year, down from 0.9% in 2002.

The full 15-member EU - the euro zone plus Britain, Denmark and Sweden - recorded GDP growth of 0.7% last year, against 1% in 2002

The European Commission said the euro zone's lower-than-forecast fourth quarter growth figures will have no impact on data for 2004.

European Commission spokesman Gerassimos Thomas said that fourth quarter growth "has to be seen against a background of accelerating growth" and that the fourth quarter figure "will not have an impact on the coming year".

The Commission this morning forecast first and second quarter growth of 0.3 - 0.7%.