Eurozone economy expands 0.3% in Q1, below estimates

By Mucahithan Avcioglu

ISTANBUL (AA) - The eurozone and EU economies expanded by 0.3% quarter-on-quarter in the first quarter, below market forecasts, Eurostat announced on Thursday.

Markets had expected the euro area's gross domestic product (GDP) to expand by 0.4% in the first quarter.

On a yearly basis, the euro area posted a GDP growth rate of 1.2%, with 1.4% for the EU, according to Eurostat's preliminary figures.

Among the member states, Ireland saw the highest quarterly increase with 3.2%, followed by Poland with 0.7%.

Slovenia's economy shrank the most in the first quarter with 0.8%, followed by Portugal with 0.5% and Hungary with 0.2%.

The year-on-year growth rate was positive for 17 countries and negative for four.

Slovenia saw the largest annual decline with 0.8%, followed by Austria with 0.7% and Hungary with 0.4%.

Ireland posted the largest annual increase with 10.9%.

The eurozone/euro area, or EA20, represents member states that use the single currency – the euro – while the EU27 includes all member countries of the bloc.