The eurozone economy grew more than expected in the last quarter of 2013 thanks to stronger expansion in its biggest countries France and Germany, the first estimate from the EU’s Statistics Office showed yesterday.

The economy of the 17 countries that shared the single currency in the last quarter rose 0.3 per cent in the three months to December against the previous three months, after a 0.1 per cent rise in the third quarter.

Analysts polled by Reuters expected a 0.2 per cent quarterly rise. Compared with the same period of last year, eurozone gross domestic product rose 0.5 percent, above market expectations of a 0.4 per cent rise.

The first estimate does not provide a detailed breakdown into GDP components, which will only be available on March 5.

The gradually strengthening recovery still faces downside risks

The €9.5 trillion economy contracted 0.4 per cent overall in 2013, Eurostat said. The European Commission expects it will grow 1.1 per cent in 2014.

The gradually strengthening recovery still faces downside risks, mainly from turmoil in financial markets, disinflation and the slow pace of implementation of structural reforms.

Separately, Eurostat data showed the bloc’s December foreign trade surplus grew to €13.9 billion from €9.8 billion in the same period last year, driven by a four per cent year-on-year rise in exports, as imports rose only one per cent.

Analysts polled by Reuters expected a €15 billion surplus in December, following a revised €17 billion surplus in November.

The eurozone’s full year external trade surplus more than doubled to €153.8 billion last year, from €79.7 billion in 2012, with exports rising one per cent and imports falling three per cent. (Reuters)