According to Eurostat’s first estimate, real GDP in the euro area grew in the first quarter of 2006 by 0.6% on a quarter-on-quarter basis. This compares with 0.3% in the last quarter of 2005, with domestic demand, including private consumption, making a significant contribution to higher real GDP growth.
Our previous expectation of a re-acceleration of real GDP growth in the first months of 2006 has thus materialised, confirming our assessment that economic growth is broadening and gradually becoming more sustained.