The European Central Bank (ECB) has revised its growth forecast for 2010 and 2011 following the publication of statistics which show that GDP rose during the second quarter.
New figures from Eurostat show that GDP rose by 1 per cent in both the euro zone and the EU27 from April to June.
ECB president Jean Trichet said staff now saw growth in a range of 1.4 to 1.8 per cent this year - giving a midpoint of 1.6 per cent - from the 0.7 to 1.3 per cent seen in June.
Next year, growth is expected to pick up to between 0.5 and 2.3 per cent, from 0.2 to 2.2 per cent in June.
Compared with the second quarter of 2010, seasonally adjusted GDP increased 1.9 per cent in both the euro zone and the European Union as a whole after rising by 0.8 per cent and 0.7 per cent respectively in the preceding quarter.
The data shows that during the second quarter, household final consumption expenditure rose by 0.5 per cent in both zones while investments increased 1.8 per cent in the euro zone and by 1.7 per cent in the EU27.
Exports were up 4.4 per cent in the euro zone and by 4 per cent in the European Union as a whole, having risen by 2.4 per cent and 2 per cent respectively during the previous quarter.
Imports were up 4.4 per cent in the euro zone and by 4 per cent in the EU27.
Separately, Eurostat today published industrial producer prices index figures for July. The data indicates the index rose by 0.2 per cent in both the euro zone and EU 27 during the month of July. Prices increased by 0.3 per cent in both zones during the month.
In July, prices in total industry excluding the energy sector rose by 0.1 per cent in both zones while prices in the energy sector were up by 0.6 per cent in the euro zone and by 0.2 per cent in the EU27.
The highest increases in the total index were recorded in Bulgaria, Cyprus, Denmark and Netherlands while decreases were seen in Greece, Hungary, Spain and Lithuania.
Industrial producer prices gained 4 per cent in the euro zone and 4.4 per cent in the European Union as a whole during July, when compared with the same month a year earlier.
Prices in total industry excluding the energy sector increased by 2 per cent in the euro zone and by 2.2 per cent in the EU27 while prices in the energy sector gained 9.7 per cent and 10 per cent respectively.
The largest increases in the total index were observed in Malta, Hungary, and Bulgaria. The only decrease observed was in Slovakia.
