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Eurozone economic growth revised down to 0.7% in Q1

Growth in the eurozone economy in the Q1 of this year fell slightly short of a previous forecast, the European Union’s statistics bureau Eurostat said Wednesday.

The economy grew by 0.7% in the first quarter compared to the preceding three months, revised down from a previous forecast of 0.8%, while year-on-year growth in the first quarter of 2008 was 2.1%. Despite increasing downside risks due to financial turmoil and record high oil prices, the eurozone economy managed to remain resilient.

However, Luxembourg Prime Minister Jean-Claude Juncker, who also chairs the euro group of 15 nations sharing the same currency, warned earlier this week that economic growth in the eurozone would slow down markedly in the second quarter. “Signs of economic slowdown are multiplying and the second quarter will be much less buoyant than the first was,” he said. “We are seeing this in (economic) confidence indicators.”

Meanwhile, official figures also showed that the EU economy grew by 0.7% in the Q1, up from 0.5% in the last quarter of 2007. Year on year, it expanded by 2. 3% after 2.5% in the previous quarter. (