07:18 AM EST June 05, 2003
The Associated Press
BRUSSELS, BelgiumEconomic growth ground to a halt in the first quarter in the 12 nations that share the euro as their currency, an estimate from the European Union's statistics agency Eurostat showed Thursday.
The flat performance compared to a 0.1 percent increase in the euro-zone in the previous quarter. Investment plummeted and the strong euro hurt exports. Only a small rise in household consumption kept the region's economy from contracting.
Problems centered on three countries: the Netherlands sank into recession with two consecutive quarters of negative growth, while Germany and Italy flirted with the same fate.
The EU forecasts no growth in the second quarter and a 0.4 percent rise in the third quarter, citing weak "domestic and foreign demand."
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