Gross domestic product (GDP) in the euro region rose 0.8 per cent in the first three months of the year, the European Union's statistics office in Luxembourg said today.

Economic growth in the final quarter of 2010 was 0.3 per cent in the Euro area and 0.2 per cent in the EU27 area, according to Eurostat figures.

Investment in the 17-nation euro region rose 2.1 per cent from the fourth quarter, when it was unchanged, and exports increased 1.8 per cent, compared with a 1.7 per cent gain.

Euro-area confidence in the economic outlook weakened in May and the European Central Bank signalled it will keep borrowing costs on hold when policy makers meet tomorrow.

"The second quarter will be weaker with the economy expanding 0.3 percent," said Christoph Weil, a senior economist at Commerzbank AG in Frankfurt.

"It's more of a normalization in growth. Exports will continue to drive an expansion." The euro was little changed against the dollar after the data, trading at $1.4664 at 10:02 am in London, down 0.2 per cent on the day.

Imports rose 1.9 percent after increasing 1.3 per cent in the fourth quarter.