The euro-zone economy grew faster than originally thought in the second quarter of 1999, European Union statistics office Eurostat said yesterday.

In a statement, Eurostat said euro-zone gross domestic product grew by 0.5 per cent on a quarterly basis and by 1.6 per cent year-on-year. It had originally estimated GDP growth at 0.3 per cent and 1.5 per cent respectively.

"According to Eurostat, these results are mainly due to a strong resumption in exports," the statement said.

Euro-zone second quarter exports grew by 2.2 per cent on a quarterly basis after falling by 0.1 per cent in the first three months of the year.

In contrast, growth in domestic demand moderated, with the pace of household spending and corporate investments slowing on a quarterly basis.