Bolstered by strong growth in Germany, the debt-crisis hit euro zone witnessed an economic growth of one per cent in the second quarter of 2010, much stronger than was expected.
The good quarterly growth comes at a time when the 16-nation euro zone, that share the common currency euro, is grappling with acute debt turmoil.
"GDP increased by one per cent in both the euro area and the European Union (grouping of 27 countries) during the second quarter of 2010," according to flash estimates released by Eurostat on Friday.
Analysts were expecting the second-quarter economic growth to around 0.6 to 0.7 per cent.
The better than expected growth was fuelled by Europe's largest economy Germany, which expanded 2.2 per cent in the June quarter, the best quarterly showing in more than 20 years.
According to Eurostat, the official statistical agency of the European Union, first quarter GDP growth was just 0.2 per cent in euro area and the EU.
Data released by Germany's Federal Statistical Office -- Destatis-- the national GDP rose by 2.2 per cent in the second quarter of 2010 as against the previous quarter, based on "price, seasonal and calendar adjustment".
"Such a quarter-on-quarter growth has never been recorded before in reunified Germany," according to Germany's Federal Statistical Office Destatis. In the first quarter, German economy had expanded 0.5 per cent.
Another European economic major France clocked a second-quarter growth of 0.6 per cent as against 0.2 per cent in the March quarter. Italy's quarterly growth was unchanged at 0.4 per cent from the first quarter.
Meanwhile, the spiralling debt crisis, which has severely hit Greece, Portugal and Spain, has even cast a shadow on the fragile global economic recovery.
Greece, where the debt turmoil began, saw its economy shrink 1.5 per cent in the three months ended June.
In first quarter, the contraction was less at 0.8 per cent. Spain's second-quarter economic growth rose marginally to 0.2 per cent while that of Portugal fell to 0.2 per cent in same period.
The encouraging quarterly growth in Europe would help in easing fears about world economy, especially in the wake of slowing US economic recovery.
