Eurozone grows below forecasts

Weaker than estimated growth figures increase pressure on European Central Bank for a new stimulus package

Weaker than estimated growth figures increase pressure on European Central Bank for a new stimulus package

ANKARA - GDP growth in Eurozone and EU28 failed to reach estimates in the first quarter of 2014, reinforcing expectations of the need for an economic stimulus package from the European Central Bank.

Euro area GDP rose by 0.2 percent in the first quarter of 2014 compared to previous quarter - well below the expected 0.4 percent, the Statistical Authority of the European Union and Eurostat reported on Thursday.

The annual seasonally adjusted GDP in the Eurozone fell below the 1.1 percent estimate at 0.9 percent in the first quarter of 2014.

Eurostat’s figures increased pressure on the European Central Bank to cut already low interest rates to lower levels, which aim at increasing loans to households and businesses in anticipation of higher growth and inflation levels.

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