The euro zone will likely clock up growth of 0.4-0.8% in the last quarter of 2005 and the first quarter of this year, the European Commission forecast today.
If confirmed, the predictions would mark stable growth after the euro zone economy expanded 0.6% in the third quarter of 2005 from the
previous quarter, a second estimate published separately by the EU's Eurostat statistics agency showed.
Looking further ahead, the European Union's executive commission was marginally more optimistic for the second quarter this year, predicting growth of 0.4-0.9%.
The euro zone economy has gradually been picking up speed over the last year and the commission is estimating growth hit 1.3% in 2005 and is set to grow 1.9% this year as domestic demand strengthens, especially in regional heavyweight Germany.
Eurostat's figures for the third quarter showed that on an annual basis the economy of the 12 nations using the euro grew 1.6% in the period.
In the broader 25-nation EU, economic growth was also 0.6% in the third quarter from the previous quarter and 1.8% over one year, Eurostat said.
