The eurozone economy expanded by 0.2 percent in the third quarter, official data showed Friday, a slight acceleration that will do little to quell fears that a sluggish Europe is hurting world growth.
The EU`s official Eurostat agency said the 18-nation eurozone`s output rose 0.2 percent in the July-September period, and also revised the second quarter figure higher to 0.1 percent from an earlier estimate that showed the bloc had stagnated.
Eurostat also adjusted the first quarter figure from 0.2 to 0.3 percent, offering an overall slightly improved outlook for the European economy.
"The Eurozone is having an almighty struggle to develop even modest growth momentum," said Howard Archer, chief European Economist for IHS Global Insight.
"Heightened geopolitical tensions, particularly related to Russia and Ukraine, have weighed down on confidence and investment across the eurozone, reinforcing ongoing challenging conditions in many countries," he said.
The data was in line with quarterly growth data from Germany and France, the single currency bloc`s two biggest economies that also showed a slightly improved picture of the economy.
In Germany, Europe`s economic powerhouse, gross domestic product (GDP) expanded by 0.1 percent in the period after shrinking by the same amount in the previous quarter.
France was estimated to have grown by 0.3 percent in the third quarter, following a contraction of 0.1 percent in the second quarter.
Since recession is technically defined as two consecutive quarters of falling GDP, both France and Germany avoided a new recession.
But French Finance Minister Michel Sapin said that while the figure was higher, the growth remained "too weak to ensure the job creation our country needs."
Italy remained in recession with GDP contracting 0.1 percent in the third quarter, after sliding 0.2 percent in the previous three-month period.
"Overall, the fact that the eurozone managed to expand at all provides a small amount of relief," said Jonathan Loynes, Chief European Economist from Capital Economics.
Loynes warned growth was "still nowhere near strong enough" to reinvigorate the economy and "diminish the risks of deflation".
Those risks remained very much alive, with Eurostat also confirming that inflation in the eurozone stood at a still low 0.4 percent in October.
