The European Commission has predicted slow growth at best for the euro zone in the first three months of this year but was hopeful of a stronger recovery over the rest of 2003.
Unveiling revisions to gross domestic product (GDP) forecasts released last month, the European Union's executive arm predicted a range of minus 0.1 per cent to plus 0.3 per cent for quarter-on-quarter euro zone growth.
Last month's forecasts foresaw a first-quarter GDP range of minus 0.2 per cent and plus 0.2 per cent.
"Although the start of the year is likely to be weak in the euro area, it remains compatible with the baseline scenario of a gradual recovery in the course of 2003," the EC said.
For the last three months of 2002, Brussels said euro zone growth was likely to have been between 0.1 per cent and 0.4 per cent from the previous quarter, against the previously predicted range of 0.2 to 0.5 per cent.
"Weak car registrations and poor confidence in the retail sector suggest sluggish consumption, and are behind the marginal downward shift of the forecast range," the EC said.
Eurostat, the EU's statistics office, estimated that euro zone growth in the third quarter of 2002 was 0.3 per cent, and 0.4 per cent in all 15 EU member states. The figures were unchanged from the second quarter.
AFP