Eurozone grows from stronger-than-expected expansion by Germany and France

There was slightly stronger-than-expected growth in Germany and France in the final three months of last year, helping the eurozone’s recovery.

The region’s overall economy expanded by 0.3 percent between October and December, compared with the previous quarter.

A particularly positive sign was that for the first time in almost three years the six largest eurozone economies all improved.

Analysts said the growth – mainly driven by exports and investment – has not though led to decent job creation, a crucial element in the recovery.

They remain cautious about the potential for this year given the relatively strong euro and a slowdown in emerging market economies.

Country by country

Germany, Europe’s largest economy, saw its growth accelerating to 0.4 percent on the quarter, up from 0.3 percent in the previous three months.

That was thanks to a rise in exports and capital investment.

The German Economy Ministry said on Wednesday it expected gross domestic product (GDP) growth of 1.8 percent in 2014 – more than four times faster than in 2013 as a whole.

French GDP expanded by 0.3 percent and statistics office INSEE revised up the third quarter figure to flat from -0.1 percent.

It was driven by the first rise in corporate investment in two years. Public investment was even stronger and household spending also recovered.

That meant France’s economy grew 0.3 percent over the course of last year, more than the government’s estimate of 0.1 percent.

Italy dragged itself back to growth for the first time since mid-2011.

Its economy expanded marginally by 0.1 percent. Over the whole of 2013, GDP contracted by 1.9 percent, the ISTAT statistics office said.

Spain has already reported fourth quarter growth of 0.3 percent, its second successive quarter of expansion. The government now expects growth this year of close to 1.0 percent, compared with an official forecast of 0.7 percent.

The Netherlands economy grew by a solid 0.7 percent on the quarter, well above the market consensus.

Belgium GDP grew by 0.4 percent and Austria’s rose 0.3 percent.