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Eurozone growth 'surprising'

Jaimie Kanwar

New figures reveal that Eurozone growth in the first quarter of 2008 was better than expected....

Gross domestic product (GDP) rose by 0.7% from the previous quarter in the 15 nations using the euro, compared with the 0.5% growth analysts expected.

Eurozone GDP was up by 2.2% compared with the same quarter in 2007. Separately, Eurostat confirmed that eurozone inflation in April slowed to 3.3% year-on-year from March's record figure of 3.6%.

Based on the figures, Fortis economist, Nick Kounis made some less than positive predictions for the future: “The strong GDP growth in Europe is a last hurrah for the eurozone economy. The strength of the euro and a fall-off in global growth will dent exports and take their toll on the economy.

“Furthermore, consumer spending will moderate as rising inflation will offset wage growth and strong employment”.