The euro zone economy grew by 0.5% in the first three months of the year compared to the last quarter of 2004, and should keep up a simlar pace in the quarter ahead, the EU commission estimated today.
The European Union's executive arm said in a quarterly report that the economy appears to have picked up in the first quarter of 2005 as domestic demand continues to improve in the euro area.
'But as business surveys have been sending mixed signals, the underlying strength of the economy should not be overestimated,' it added.
Earlier this month, the commission forecast that euro zone economy would grow 1.6% this year.
